You’re So Far Away From Me … But You Can Still Sign This Retirement Plan Distribution Form
During the pandemic, the IRS on multiple occasions provided relief from the requirement that a person be physically present for certain paperwork associated with retirement plan distributions. (See our blog posts of June 4, 2020 and January 25, 2021, and also IRS Notices 2020-42, 2021-3, 2021-40 and 2022-27.) Apparently acknowledging that the new remote procedures are sufficiently reliable, the IRS is proposing to make them permanent.
The IRS has proposed regulations that would permanently permit remote witnessing and remote notarization. In general, the regulations (like the prior temporary relief) will permit remote notary services that comply with applicable state law, and also will permit remote witnessing by means of live audio-video technology. There are a few minor differences between the new proposed regulations and the former guidance, so plans wishing to follow this track should be careful to establish and follow clear procedures.