Form 6088: Distributable Benefits From Employee Pension Benefit Plans

Form 6088: Distributable Benefits From Employee Pension Benefit Plans

Form 6088 is a form used by the Department of the Treasury and the Internal Revenue Service for analyzing an application for a determination letter on the qualification of a plan upon termination. To provide accurate information, plan sponsors and administrators must complete columns (a) through (h).

What is Form 6088?

Form 6088 is an Internal Revenue Service (IRS) form used to provide essential information about plan participants of a collectively bargained underfunded defined contribution plan, a defined benefit plan, or an underfunded defined benefit plan. It requires information such as the participant’s age, years of participation, and liability as of the plan termination date. In addition, compensation is important, such as the participant’s highest paid 3 years and account balances for both mandatory and voluntary employee contributions. The information collected on Form 6088 is used to analyze an application for a determination letter on the qualification of the plan upon termination. Plan sponsors and administrators are required to complete Form 6088 and attach it to Form 5310 or Form 5300 when applying for an IRS determination letter.

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IRS Form 6088 – Who Needs to Fill It Out?

Form 6088 requires the plan sponsor or administrator of a defined benefit or an underfunded defined contribution plan to list all plan participants who are qualified to receive benefits upon plan termination and provide information such as compensation, accumulated contributions, and present value of their total benefit liabilities. Participants must be listed in order of highest compensation followed by the next highest-paid and so on, with the first 25 covered by priorities in the instructions for Column (a). Sections 6104 and 415 of the Internal Revenue Code are also relevant for the completion of this form.

Step-by-Step: Form 6088 Instructions For Filling Out the Document

Form 6088 is a comprehensive form for providing relevant information of plan participants that is used by the Internal Revenue Service when reviewing an application for determining a plan’s qualification upon termination. The form must be completed for defined benefit and underfunded defined contribution plans. Information that must be reported for each participant includes columns (a) through (h): first name the participants who owned directly or indirectly 5% or more of the voting stock or 5% or more of the business, then the remaining participants in order of current compensation, their age as of the plan termination, their compensation for the current 12-month period, years of participation prior to retirement, separation from employment, or plan termination, present value of the total benefit liabilities, and the total assets distributable to the participant. A separate form should be filed for each employer, and an additional statement is needed if the sum of the amounts in columns (g)(1), (g)(2), and (g)(3) do not equal line 20(I) of Form 5310. Form 6088 should never be made available to the public or other employees of the employer.

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Below, we present a table that will help you understand how to fill out Form 6088.

Information Required for Form 6088 Details
Participants Information Report information for plan participants
Filing for Each Employer File a separate form for each employer
Additional Statement May require an additional statement in certain situations
Confidentiality Do not make the form available to the public or other employees
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Do You Need to File Form 6088 Each Year?

Form 6088 must be completed each year in order to file an application for an IRS determination letter regarding a plan termination. This form includes information such as the participant’s current compensation, total benefit liabilities, and total assets distributable to the participant. It’s important to note that Form 6088 is not open to public inspection, and plan sponsors or administrators must file a separate form if they qualify. Additional instructions and definitions are also specified to ensure proper completion of the form.

Download the official IRS Form 6088 PDF

On the official IRS website, you will find a link to download Form 6088. However, to make it easier for you, we are providing the link in our article, which comes directly from the official website! Click to download: Form 6088


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