In response to the COVID-19 pandemic, the IRS has provided temporary relief from the requirement that spousal consent for retirement plan loans, distributions, and beneficiary designations take place in the physical presence of a plan representative or notary public.
IRS Notice 2020-42 provides for the physical presence requirement to be deemed satisfied during calendar year 2020 under the following conditions:
Notary Public Witnessing
A spousal consent is acceptable if it is executed during a remote notarization session utilizing video technology that is consistent with applicable state laws regarding remote electronic notarization requirements.
Plan Representative Witnessing
A spousal consent executed during a remote live videoconference is acceptable if:
- The spouse provides his or her valid photo ID to the plan representative during the remote videoconference;
- The remote live videoconference allows the spouse to interact directly with the plan representative;
- The spouse faxes or transmits electronically the signed document to the plan representative on the day of signing; and
- The plan representative acknowledges his or her witnessing of the signature per the requirements of Notice 2020-42 and returns the signed document with the acknowledgment to the spouse.
