Jump to content

Recommended Posts

Posted

If there is a participant (or even employee) who terminated in 2020 with zero balance, should they be reported on the 8955-SSA after receiving a corrective QNEC deposit in 2024? Should they be reported at all? Form instructions reference when the participant separates from service - 1) some of these employees were never participants and 2) they did not have a balance at the time they terminated so I don't think filing amended forms make sense either. Logic makes me want to report them code A so there is reporting of a remaining balance, but I know logic doesn't always apply. 

 

Form Instructions state: 

When To Report a Separated Participant In general, for a plan to which only one employer contributes, a participant must be reported on Form 8955-SSA if: 1. The participant separates from service covered by the plan in a plan year, and 2. The participant is entitled to a deferred vested benefit under the plan. In general, information on the deferred vested retirement benefit of a plan participant must be filed no later than on the Form 8955-SSA filed for the plan year following the plan year in which the participant separates from service covered by the plan. However, you can report a deferred vested participant on the Form 8955-SSA filed for the plan year in which the participant separates from service under the plan if you want to report earlier. 

Posted

Was it small enough to be able to force him/her out before the filing deadline?

Anyway, a little common sense that you would have reported them earlier if they'd had that balance all along.  Now they do, so the reporting obligation kicks in because after all, the whole point of the 8955 is to try to pair participants with their long lost funds so that they are reunited when applying for SSA benefits.

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...

Important Information

Terms of Use