©2005 Investment Company Institute. All rights reserved. Information may be abridged and therefore incomplete.
Communications from the Institute do not constitute, and should not be considered a substitute for, legal advice.
[19244]
October 13, 2005
TO: PENSION COMMITTEE No. 35-05
RE: INSTITUTE COMMENT LETTER TO IRS ON ELECTRONIC PLAN
COMMUNICATIONS
Attached is a comment letter the Institute filed today with 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 Institute’s 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 Institute’s
comment 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.
Mary S. Podesta
Senior Counsel - Pension Regulation
Attachment (in .pdf format)