The IRS and the Social Security Administration have announced a change with respect to the filing requirement for Schedule SSA (Form 5500). This schedule is used to report participants with vested deferred benefits.
Schedule SSA only includes room to report up to four participants who have vested deferred benefits. The 2002 Instructions for the Form 5500 state that a copy of page 2 of Schedule SSA must be used to report additional participants. However, due to public comments regarding the difficulty in complying with this requirement, the IRS and Social Security Administration will not reject a filing or impose any penalties if additional participants are reported in another manner. Accordingly, as in the past, filers can use non-standard attachments to satisfy their Schedule SSA filing requirements.
The IRS Announcement of this change can be found in the Spring 2003 edition of IRS Employee Plans News.
Note: In our Form 5500 Update Program, we discuss important Form 5500 issues.