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.

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.

See more insights

Businessman Talking To An Employee About A Development Project On A Laptop

Multiemployer Pension Plan News for Q3 2024

Multiemployer retirement plan sponsors: Get caught up on 5 hot topics in our brief recap of news impacting multiemployer pension plans.

Retirement, Multiemployer Plans, Investment

Read Full Insight

US Supreme Court Building With People On Steps

SCOTUS Decision Impacts Regulations Affecting Benefit Plans

40-year-old Chevron doctrine overturned by SCOTUS: Our latest insight provides key takeaways on the decision and its impact on plan sponsors.

Health, Retirement, Compliance, Multiemployer Plans, Public Sector, Healthcare Industry, Higher Education, Architecture Engineering & Construction, Corporate

Read Full Insight

Woman By Her Crashed Car Talking To A Mechanic On Her Phone

IRS Notice on Emergency & Domestic Abuse Distribution Taxes

Get the details about the guidance on two discretionary provisions of SECURE 2.0.

Compliance, Multiemployer Plans, Public Sector, Healthcare Industry, Higher Education, Architecture Engineering & Construction, Corporate, Retirement

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.