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Communications from the Institute do not constitute, and should not be considered a substitute for, legal advice.
[19149]
September 13, 2005
TO: PENSION COMMITTEE No. 30-05
RE: DRAFT COMMENT LETTER TO IRS ON ELECTRONIC PLAN COMMUNICATIONS
Attached for your review is a draft Institute letter to the Internal Revenue Service on
proposed regulations that would clarify the effect of the Electronic Signatures in Global and
National Commerce Act (E-SIGN) on existing IRS rules on electronic plan communications
adopted in 2000. The proposal was issued on July 14, 2005 and comments are due by October
12, 2005.1
The draft letter strongly supports the approach in the proposal to the consumer consent
requirement of E-SIGN – to provide an exemption to allow plans to continue using their
existing procedures under the 2000 regulations. The letter also supports the proposal to allow
electronic notarization of spousal consent under Code section 417 if the individual’s signature is
witnessed in the physical presence of a plan representative or notary. The letter further
supports granting the Commissioner discretion in the future to allow, after notice and
comment, electronic notarization without the spouse’s presence if technological advances
warrant.
The proposals do not address IRAs, other than SEPs and SIMPLEs. The draft letter
requests that the Service adopt consistent rules for all IRAs and clarify that the proposed
regulations will not affect the current rules governing electronic IRA withholding notices and
elections under section 3405.
Please provide any comments that you may have on the draft letter to me at 202 326
5826 or podesta@ici.org by September 30.
Mary S. Podesta
Senior Counsel - Pension Regulation
Attachment (in .pdf format)
1 The proposal is available at: http://www.regulations.gov/fredpdfs/05-13911.pdf.