Online Notarization for Spousal Consents is Here to Stay
The Internal Revenue Service (IRS) recently issued a new set of proposed regulations that would permanently waive the pre-existing requirement that spousal consents for plan distributions to be witnessed in-person by a notary or plan representative. Here's everything you need to know about how we got here, what it means for you and your business, and how you can partner with Notarize for retirement planning like never before.
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The Platform with Proven Impact
How Notarize Moved the Needle
Following an emergency order issued by the President in the wake of the COVID-19 pandemic, the IRS issued Notice 2020-42 to provide relief from the in-person requirements for spousal consent waivers, allowing consumers to complete spousal consent forms online with online notarization.
The IRS released Notice 2021-03 extending the temporary relief from the requirement through June 30, 2021.
The IRS released Notice 2021-40 extending the temporary relief through June 30, 2021.
The IRS released Notice 2022-27 extending the temporary relief through June 30, 2022.
The IRS issues a notice of proposed rulemaking and notice of public hearing in the Federal Register that would permit spousal consents for plan distributions to be witnessed by a notary or plan representative remotely online.
State of Play
TL;DR: The new proposed regulations and any comments that get submitted pertaining to them will be discussed in a public hearing in April. Pending there is no need for additional comment or reply periods, the final rule will be reviewed by the President of the Office of Information & Regulatory Affairs (OIRA) and made official once published in the Federal Register.