IRS Releases Draft Form 8955-SSA

The Internal Revenue Service has released an updated draft Form 8955-SSA, Annual Registration Statement Identifying Separated Participants With Deferred Vested Benefits. Retirement plan sponsors use this form to notify the Social Security Administration (SSA) if a former employee has vested benefits remaining in the plan. If such benefits are subsequently paid out to the participant, the plan sponsor must file amended information on Form 8955-SSA regarding the reduced or fully distributed plan benefits. The SSA retains this information and if additional benefits are due, will share that information when a person files to receive social security benefits.