Temporary Relief for Retirement Plan Participants

Conditions and Requirements for Retirement Plan Participants 



According to the temporary relief for retirement plan participants, few conditions needs to fulfill. These conditions are listed below.

1. The representative must have an electronic system based on audio-visual (AV) technology to make the participant’s election.
2. The electronic system must be designed to prevent access to irrelevant persons. 
3.  The electronic system must facilitate the individual making the election to evaluate, verify, change, or cancel the terms of the election before it turns out to be successful.
4. The representative making the election for participant must receive a confirmation of election within a reasonable period through a signed document or any electronic medium that satisfy the requirements of temporary relief regulations. 

There are two cases in the temporary relief issued by the IRS. In the first case, the witness deemed satisfied for remote notarization if it is executed using AV technology. This technology must satisfy the 2020-24 requirements  and consistent with the requirements of state laws that can vary for different states. The second case is about the witness provided by a plan representative. This witness is deemed satisfied if the live AV conference satisfies the following requirements.

1. During the live AV conference, the plan representative that is signing the election for the retirement plan participant must provide a valid photo ID. It is not acceptable if the ID is provided before or after the live conference. 
2. There must be a direct interaction between the plan representative and the individual making the election. 
3. A legible document signed by the election making individual must be sent electronically or using any other way to the plan representative on the same day it is signed. 
4. The plan representative must acknowledge that the signature has been witnesses according to the rules and transmit it back to the election making individual when he receives the legible document.

The Takeaway

This temporary relief offer by the IRS for the retirement plan participants can be considered a welcome relief to the administrations and participants. However, this relief notice is future is not known because it is unclear from IRS that whether IRS will make this change permanent or not. However, the plan administrators should continue the process under consideration of the IRS temporary offer. For more information, please contact Cartier CPAs by using the contact details given on the website. 



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