8955-SSA - filing multiple yrs w/DFVC

[TPApril]

Company never filed Forms 5500 and 8955-SSA since plan inception 5 years ago.

Normally with 8955-SSA, a terminated participant from the prior plan year does not need to be reported if they took their full distribution before the 8955-SSA is filed (Ex, DOT=7/31/24; Distribution on 7/31/26; 2025 Form 8955-SSA filed on 9/10/26 w/out them).

When filling out these prior 8955-SSA's, do we list terms as it would have been filed at correct time, or for anyone who has taken a distribution, can we leave them off entirely, rather than reporting them both as an A and then a D in a later year?

[austin3515]

I cannot stress enough that this is not advice, but perhaps you would consider filing one 8955-SSA for 2025 reporting all of the A's on a cumuative basis on one form.  I would never do such a thing of course. But it strikes me as getting the SSA where they want to be so perhaps they would be just fine with getting the data in that manner.  I've never asked...

If I was the SSA it might occur to me that there is no value in you filing someone on a 2022 8955-SSA as an A, and then reporting them as a D on the 2024 SSA.

[Paul I]

If you are looking for relief using DFVC and Notice 2014-35, you need to file a Form 8955-SSA for each year.  Inclusion or exclusion for each year's filing will depend on the participants' circumstances for that year.

I can understand that it seems counterintuitive to include in a prior year's filing a participant who was paid out in a following year.  If there is any logic to including, it would be that the DFVC is applicable to individual years and future events for each year are not considered.

[austin3515]

I don't know that I necessarily even knew DFVC was a thing for 8955-SSA's...  Good to know!

[TPApril]

Yes - we are doing DFVC.  We are going to be conservative and report them as it would have been.

Austin - My understanding on that is that once you have filed your late 5500's and filed the DFVC, you have 30 days to file the related 8955-SSA's by paper(!) and they qualify under the DFVC. 

[austin3515]

Sound use of taxpayer dollars!  Out of spite alone I would use DFVC if I ever had to do 10 years worth!

[ESOP Guy]

Has anyone ever seen this be an issue?  I don't mean not getting the filings caught up under DFVC but just excluding people who would be an A in one year and a D in a subsequent year just being left off.  

I would put only A's on the prior years that are still haven't been paid in the current year.  I want to say I have done that when it was just missed 8955-SSAs and not 5500s.  We just got them all caught up net net in the current year.  I have never seen it bite a client.   

[austin3515]

When Not To Report a Participant

A participant who has not been previously reported is not required to be reported on Form 8955-SSA if, before the date the Form 8955-SSA is required to be filed (including any extension of time to file), the participant:

 

https://www.irs.gov/instructions/i8955ssa

I mean what you are saying sounds reasonable of course, no argument there.

[Paul I]

I agree this approach sounds reasonable, but the example in Notice 2014-35 references the using DFVC to file for plan year for which the filing is missing.

[austin3515]

@Paul I I think we are saying the same thing.  if someone needed to be reported as an A in 2022, and closed their account in 2024, to use DFVC you are required to report the A in 2022 and the D in 2024 because as of the due date of the 2022 5500, they had not yet closed their account.  

I was saying the logic referenced is reasonable, but if you want to qualify for the letter of the law under DFVC you can't do it.  And I gather it won't save you any time anyway.

I think we all agree at the end of the day the SSA really just wants to know as of today who has balances out there.  A client might choose to take certain liberties and it would be challenging for me to object too strenuously.  I think that is what I mean by reasonable.