The IRS recently released proposed regulations (REG–114666–22) regarding the permanent alternative use of an electronic medium for those participant elections and spousal consents required for joint and survivor annuity plan distributions or loans. Current rules require in-person witnessing of spousal consents by a notary public or a plan representative.
The proposed regulations are a response to comments solicited by the IRS and Treasury throughout the COVID-19 pandemic. Due to social distancing requirements imposed during 2020, the IRS released a notice granting temporary relief from the physical presence requirement for spousal consents, followed by three temporary relief notices in 2021 and 2022. The proposed regulations would generally affect sponsors, administrators, and individuals entitled to benefits under certain qualified retirement plans.
The regulations are proposed to apply beginning on the date that is six months after publication of final regulations. Prior to the applicability date of the final regulations, taxpayers may rely on the rules set forth in the proposed regulations.
Contact:
Tax professional standards statement
This content supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this content may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this content is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.
The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact Grant Thornton LLP or other tax professionals prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton LLP assumes no obligation to inform the reader of any such changes. All references to “§,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.
More tax hot topics
No Results Found. Please search again using different keywords and/or filters.
Share with your network
Share