IRS Issues Guidance on Reporting Requirements for Deferred Vested Benefits | Practical Law

IRS Issues Guidance on Reporting Requirements for Deferred Vested Benefits | Practical Law

On June 20, 2012, the Internal Revenue Service (IRS) issued proposed regulations providing that Form 8955-SSA is eligible for an automatic 2 1/2 month extension by filing Form 5558 and that a signature is not required on Form 5558. Form 8955-SSA is the form that is used to report separated participants with deferred vested benefits to the IRS.

IRS Issues Guidance on Reporting Requirements for Deferred Vested Benefits

Practical Law Legal Update 7-519-9921 (Approx. 3 pages)

IRS Issues Guidance on Reporting Requirements for Deferred Vested Benefits

by PLC Employee Benefits & Executive Compensation
Published on 21 Jun 2012 • USA (National/Federal)
On June 20, 2012, the Internal Revenue Service (IRS) issued proposed regulations providing that Form 8955-SSA is eligible for an automatic 2 1/2 month extension by filing Form 5558 and that a signature is not required on Form 5558. Form 8955-SSA is the form that is used to report separated participants with deferred vested benefits to the IRS.
On June 20, 2012, the IRS issued proposed regulations that:
  • Add Form 8955-SSA, to the list of forms covered by the automatic 2 1/2 month extension that applies by filing Form 5558. Form 8955-SSA is the form that replaced Schedule SSA and is used to report separated participants with deferred vested benefits for plan years beginning on or after January 1, 2009. Form 5558 is now the form used for an automatic extension to file Form 8955-SSA and Form 5500.
  • Provide that a signature is not required on Form 5558.
  • Designate Form 8955-SSA as the form used to satisfy the reporting requirements of IRC Section 6057. IRC Section 6057 requires plan administrators to report information relating to each participant with a deferred vested benefit.
The proposed effective date of the regulations is June 21, 2012. The proposed regulations may be relied on pending the issuance of the final regulations. Comments are requested by September 19, 2012.
The signature requirement on Form 5558 to extend the due date to file Form 8955-SSA caused confusion and missed deadlines for plan administrators. Now the ability to submit one Form 5558 without signature to extend both Form 8955-SSA and Form 5500 provides consistency and administrative convenience for plan sponsors and practitioners.
For an overview of qualified retirement plans, see Practice Note, Requirements for Qualified Retirement Plans.