IRS adds more questions to the Form 8955-SSA Q&A

Form 8955-SSA replaced the Schedule SSA attached to the Form 5500.  The deadline for the  first filing of the new form recently passed. Based on the new questions and answers, it appears that people are having trouble obtaining the data to complete the Form 8955-SSA.  Here is an abbreviated version of the latest Q&A:

What should I do if I missed the filing deadline? Answer - submit your form as soon as possible.
Am I required to remit payment for penalties? Answer - no, we will contact you if a penalty is assessed.
Is there a delinquent filer program for late filers? Answer - not at this time.


Let's hope the IRS will be very lenient.

Two interesting bills introduced

The IFEBP noted two interesting bills in its Today's headlines:

Health Freedom for Seniors Act (HR 3819)  would amend the IRC to allow the transfer of required minimum distributions from a retirement plan to a health savings account.

Elder Care Tax Credit Act of 2012 (HR 3820) would modify the dependent care credit to take into account expenses for care of parents and grandparents who do not live with the taxpayer.

HHS extends contraceptive coverage deadline for certain organizations

In a press release issued January 20, 2012, HHS announced that nonprofit employers who, based on religious beliefs, do not currently provide contraceptive coverage in their insurance plan, will have until August 1, 2013 to comply with the new law. Recall that beginning August 1, 2012, most new and renewed health plans will be required to cover all FDA approved forms of contraception.

Employers wishing to take advantage of the additional year must certify that they qualify for delayed implementation and provide notices to their employees stating that contraceptive services are available at sites such as community health centers.

New Year - time to focus on compliance

Employee benefit compliance is often viewed as a necessary evil; it is tedious, boring and complicated but if your plans are selected for audit, the process can be a nightmare if you are not prepared.

A recent Towers Watson Retirement Plan Governance Survey revealed that 73% of respondents indicated regulatory complexity will be among the top governance risks over the next two years.  The survey also revealed that only 26% of plan sponsors conduct regular compliance reviews driven by anticipated new risks and a pending government audit.

We have a number of tools to get you started.  Download our ErisaALERT 2012-01 to learn more.

IRS issues new guidance on W-2 reporting

The Affordable Care Act required informational reporting of the aggregate cost of employer sponsored group health plan coverage beginning with 2012 W-2s issued in January 2013 (ErisaALERT 2011-5 and ErisaALERT 2011-14). The IRS provides new guidance in Notice 2012-9 which restates and supersedes previous guidance. In this latest Notice, the IRS clarifies some of the Q's and A's in Notice 2011-28 and adds new Q's and A's. The changes are summarized in the introduction to the Notice. Read ErisaALERT 2012-02 for more information.

IRS posts FAQ regarding deferred vested benefit statement

The IRS has a long standing requirement to provided a benefit statement to participants who terminated and were reported on the Schedule SSA attached to the Form 5500.  The Schedule SSA has been replaced by Form 8955-SSA which requires plan sponsors to indicate whether or not the statement was provided to the participant (question 8).  There has been a flurry of discussions regarding how plan sponsors should answer that question.  The new FAQ should provide some comfort to plan sponsors and is reproduced below.

What are the requirements for answering “yes” to question 8 on Form 8955-SSA? Question 8 on Form 8955-SSA asks whether the plan administrator provided an individual statement to each participant required to receive a statement. The instructions to the Form add that the plan administrator must, before the expiration of the time for the filing of the Form, furnish to each affected participant a statement setting forth the information required to be contained in the Form. May the plan administrator satisfy this requirement by using other notices such as benefit statements and distribution forms? Also, does this mean that the plan administrator must furnish a notice that includes all of the information on the Form 8955-SSA? A plan administrator may answer “yes” to question 8 if the required information was timely furnished to participants in other documentation such as benefit statements or distribution forms. A separate statement designed specifically to satisfy this requirement is not required.  A plan administrator may answer “yes” to Question 8 if the statements or other documentation issued to the participants include the following information: Name of the plan Name and address of the plan administrator Name of the participant Nature, amount, and form of the deferred vested benefit to which such participant is entitled. Thus, for purposes of completing Form 8955-SSA, the plan administrator’s notice to the plan participant does not need to include the participant’s social security number, the codes on page 2 of the Form 8955-SSA used to identify previously reported participants, or any information regarding any benefits which are forfeitable if the participant dies before a certain date.