Archived Insight | May 18, 2022

Relief from Physical Presence for Spousal Consent Extended

For the third time, the IRS has extended its relief from the “physical presence” requirement for any participant elections that a plan representative or a notary public must physically witness.

Until December 31, 2022, plans may continue to use video options and e-signatures to obtain spousal consent to participant waivers of benefit forms without the participant and spouse having to be present in person. This is a six-month extension.

Relief from Physical Presence for Spousal Consent Extended

Background

The IRS provided the original relief in Notice 2020-42 and extended it twice: in Notice 2021-3 and Notice 2021-40. The prior extension of the temporary relief is scheduled to end June 30, 2022.

The latest extension

The latest extension is in Notice 2022-27, which was issued on May 13, 2022.

Segal provided a full discussion of the substantive issues in its Notice 2021-40 description, which was issued on June 28, 2021.

Will the relief be made permanent?

The 2020 and 2021 notices asked for comments on whether the relief should be made permanent. The latest notice confirms that the Treasury Department and the IRS continue to consider that option in light of stakeholder comments they received.

If they decide to propose modification of the physical presence requirement, they’ll do that through the regulatory process. That would give stakeholders another chance to comment.

Have questions about this guidance?

We have answers. 

Contact Us

See more insights

Senior Couple Doing Online Banking Together

Webinar on Meaningful Retirement Income

What makes a successful retirement program? Join our webinar November 25 to learn 3 key components that are essential to retirement plan success.

Retirement, Investment, Multiemployer Plans, Public Sector, Corporate, Technology, ATC

Register for the webinar

Diverse Group Of Employees Meet Virtually And In Person

Building a Strong Culture in a Dispersed Work Environment

Culture is much more than what happens when people gather in the same location; our article gives tips on the best ways to build it.

Compensation & Careers, Benefits Administration, Communications, Corporate, Retirement, Healthcare Industry, Benefit Audit Solutions, Architecture Engineering & Construction

Read Full Insight

Worried Couple Feeling Frustrated While Have To Pay Their Bills

DB Plans Are Invaluable to Those Living Paycheck to Paycheck

Segal's Dan Siblik shares eye-opening stats that make the case for DB plans as the most reliable, consistent and efficient source of retirement income

Retirement, Public Sector

Read Full Insight

This page is for informational purposes only and does not constitute legal, tax or investment advice. You are encouraged to discuss the issues raised here with your legal, tax and other advisors before determining how the issues apply to your specific situations.