8955-SSA Filings - records of filings?

As you are aware, many moons ago, we / I would file an 8955-SSA to show participants with balances in a retirement plan.  These were typically un-locatable or non-responsive participants, and filing this form was "THE" alternative to a 100% withholding to the IRS.  (They frowned upon 100% w/h, didn't they?!?)

A) does anyone file an 8955-SSA anymore?  I only have small clients (<20 participants each), so this need does not arise often if ever.

B) is there a way to see what has been reported for a specific EIN?  I just found the 2017 8955-SSA of a takeover client in the previous TPA's records.  I don't know what, if anything, was filed prior to 2017.

Thanks!

BTW - I did a search for "SSA" prior to posting this, but "0" topics were found.  Sorry if this topic is redundant.

I think you are conflating two things.  1) You can't WH 100%.  2) You must report unpaid participants on the 8955-SSA.  I wouldn't call the latter "'THE' alternative" to the former, although I suppose it is true that if you can't WH 100% you are going to have to file the 8955-SSA.

No there is no way to know what may have been done already.  If not sure, you can try reporting participants as being reported prior and now paid out but your mileage may vary.  It's best to save distribution records FOREVER so that when someone comes and says "SSA says I have money in this plan" you can say "no, they say you MAY have money in the plan and here is proof that you took it."

Thank you Bird.  I know that we cannot do 100% withholding, although I am old enough in this business to remember when that was an option because it was discussed at several conferences I attended.

Anyway, I appreciate your answer.  I have only had 1 participant call to say they had received a letter, but she had been paid out and a "D" had not been reported on the SSA.  That was a million years ago.

I haven't used the SSA form in many many years.  IF a plan terminates with non-responsive participants, their money gets moved to PenChecks.  Easy peasy.  But again, my practice only handles very small employers' retirement plans.

Thanks!

https://www.irs.gov/retirement-plans/penalties-related-to-the-filing-of-forms-8955-ssa

You may not use it and the IRS may not catch it but the penalties for not filing are rather steep and there is no "small plan exception" to filing the form.

21 minutes ago, Lou S. said:

https://www.irs.gov/retirement-plans/penalties-related-to-the-filing-of-forms-8955-ssa

You may not use it and the IRS may not catch it but the penalties for not filing are rather steep and there is no "small plan exception" to filing the form.

😕 Thanks.  Good thing it's a rarity for me...

As far as I am concerned when it comes to 8955-SSAs follow the saying:  when in doubt D

If you aren't sure the person was reported on a prior 8955-SSA report them as a D if they meet the criteria. 

The fear people come back with is:  well if I report a D that wasn't an A won't we be admitting we failed to report an A and the IRS will....

I have NEVER seen that. 

On the other hand you can search Benefitslink for all kinds of threads where someone got the letter and demanded the plan prove they were paid.  If you read the rules carefully the plan is supposed to keep enough records to prove that forever.  It happens a lot with a change of TPAs but it is the plan admin/sponsor's job to keep the records not the TPA's.

In short I have never seen any downside "when in doubt D" but I have seen people spend a ton of non-billable hours trying to figure out if a person has been paid to their satisfaction.   Yes, most people who get those letters accept the plan saying, "we shown you aren't due any benefits" but you get the hard cases now and then. 

26 minutes ago, ESOP Guy said:

Yes, most people who get those letters accept the plan saying, "we shown you aren't due any benefits" but you get the hard cases now and then. 

Once had someone who was reported as D on the SSA, then still got the SSA letter, and questioned her benefit from the Plan even after we sent her a copy of her notarized signed election form and 1099-R claiming "I don't remember getting that." Mind you this was years after the Plan went through a PBGC Plan Termination and had paid out all assets. Though I think the DOL/IRS is better about removing "D coded participants" since electronic filing of forms.

17 minutes ago, Lou S. said:

Though I think the DOL/IRS is better about removing "D coded participants" since electronic filing of forms.

To be clear, this filing information goes thru the IRS, but they don't use it.  The SSA is the agency that uses this information.