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Reminder: Retirement Plan Participant Election Physical Presence Relief Ends June 30

Thomson Reuters Tax & Accounting  

Thomson Reuters Tax & Accounting  

Reminder: the temporary relief from the requirement that participant elections, including spousal consents, be made in the physical presence of a plan representative or a notary public, that was provided in Notice 2021-3, ends on June 30.

Background.

Reg §1.401(a)-21 sets forth standards for the use of an electronic medium to provide notices to recipients or to make participant elections with respect to a retirement plan, an employee benefit arrangement, or an individual retirement plan.

Reg §1.401(a)-21(d)(6)(i) provides that, in the case of a participant election that is required to be witnessed by a plan representative or a notary public, the signature of the individual making the participant election must be witnessed in the physical presence of a plan representative or a notary public (“physical presence requirement”).

Reg §1.401(a)-21(e)(6) defines a participant election as any consent, election, request, agreement, or similar communication made by or from a participant, beneficiary, alternate payee, or an individual entitled to benefits under a retirement plan, employee benefit arrangement, or individual retirement plan.

Not. 2021-3.

Notice 2021-3, 2021-2 IRB, provides relief, through June 30, 2021, from the requirement that participant elections, including spousal consents, be made in the physical presence of a plan representative or a notary public. For additional information about the relief, see Extended: relief from physical presence for retirement plan participant elections.

To continue your research on temporary relief from physical presence rule for retirement plan participant elections, see FTC 2d/FIN ¶S-3419.5A.

 

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