The IRS has proposed new rules that would allow retirement plan administrators to file their retirement benefit plan statements, returns and reports electronically.
The agency would like to reduce errors and improve the timeliness of reporting by requiring more magnetic media filing of retirement plan reports. These rules only apply to organizations that file 250 or more returns, including W-2s and 1099s.
The Department of Labor requires e-filing of Form 5500, but not all employers and plan administrators are subject to the DOL rules and neither is Form 8955-SSA. This form helps the IRS identify plan participants who have left the company but who have deferred vested benefits.
Retirement plan sponsors that don’t file their plan information electronically will be subject to fines of $1 per person per day for failing to file Form 8955-SSA and a $25 per day penalty for not filing Form 5500.
IRS plans to implement this change for 2014 plan years. The IRS is taking comments on this proposal until Oct. 23, 2013.