Supporting
statement updated during review to clarify response 15.
Inventory as of this Action
Requested
Previously Approved
11/30/2020
6 Months From Approved
11,700,000
0
0
477,563
0
0
0
0
0
This document contains amendments to
the regulations governing certain notices and consents required in
connection with distributions from retirement plans. Specifically,
these regulations set forth applicable standards for the
transmission of those notices and consents through electronic media
and modify the timing requirements for providing certain
distribution-related notices. The regulations provide guidance to
plan sponsors and administrators by interpreting the notice and
consent requirements in the context of the electronic
administration of retirement plans. The regulations affect
retirement plan sponsors, administrators, and
participants.
The Department of the
Treasury and its Internal Revenue Service (IRS) are requesting
reinstatement of OMB Control No. 1545-1632 under emergency
procedures in connection with provisions of the Coronavirus Aid,
Relief, and Economic Security Act, Pub. L. 116-136, 134 Stat. 281
(2020) (CARES Act). On March 13, 2020, the President of the United
States issued an emergency declaration under the Robert T. Stafford
Disaster Relief and Emergency Assistance Act in response to the
ongoing Coronavirus Disease 2019 (COVID-19) pandemic, beginning
March 1, 2020 (COVID-19 Emergency). In response to this
unprecedented public health emergency, and the related social
distancing that has been implemented, the Internal Revenue Service
(IRS) plans to issue a Notice, “Temporary Relief from the Physical
Presence Requirement for Spousal Consents Under Qualified
Retirement Plans.” This notice provides temporary relief from the
physical presence requirement in § 1.401(a)-21(d)(6) of the Income
Tax Regulations for participant elections required to be witnessed
by a plan representative or a notary public, such as a spousal
consent required under § 417 of the Internal Revenue Code (the
Code). While this temporary relief, which covers the period from
January 1, 2020, through December 31, 2020, is intended to
facilitate the use of coronavirus-related distributions and plan
loans to qualified individuals, as permitted by section 2202 of the
CARES Act, the temporary relief applies to any participant election
that requires the signature of the individual making the election
to be witnessed in the physical presence of a plan representative
or notary. One of the conditions for receiving the temporary relief
from the physical presence requirement in § 1.401(a)-21(d) is for
the plan representative to acknowledge that he or she has witnessed
the signature and transmit the signed document, including the
acknowledgement, back to the person under a system that satisfies
the applicable notice requirements under § 1.401(a)-21. This is
similar to the confirmation requirement for participant elections
in § 1.401(a)-21(d), requiring that the individual making a
participant election, within a reasonable time period, receive a
confirmation of the election through either a written paper
document or an electronic medium under a system that satisfies the
applicable notice requirements under § 1.401(a)-21(c). The IRS has
determined that the plan representative’s acknowledgment that he or
she witnessed the signature of the participant election is a minor
modification to the control number 1545–1632 and should not result
in any additional paperwork burden from that which was previously
approved. The agency is requesting reinstatement in order to ensure
compliance with the CARES Act, as well as to ensure that compliance
with the underlying regulations is maintained. In light of the
short timelines to implement the new legislation, the IRS plans to
issue the Temporary Relief notice on May 22, 2020, and thus
requests approval of the control number’s reinstatement by May 21,
2020. Given the inability to seek public comment during such a
short timeframe, IRS requests a waiver from the requirement to
publish notice in the Federal Register seeking public comment
during the period of Office of Management and Budget review.
However, public comment will be solicited in conjunction with a
subsequent extension of the approval to collect this
information.
PL:
Pub.L. 105 - 34 1510 Name of Law: Taxpayer Relief Act of
1997
US Code:
26 USC 411(a)(11) Name of Law: Restrictions on Certain
Mandatory Distributions
PL:
Pub.L. 116 - 136 134 Stat.281 Name of Law: CARES Act
US Code: 26
USC 402(f) Name of Law: Taxability of beneficiary of employees’
trust
EO: EO 12862 Name/Subject of EO: Setting Customer
Service Standards
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.
1545-1632 Emergency Justification Memo 2020-05-14_Signed.pdf
notice2020-XX COVID.docx
T.D. 8873 New Technologies in Retirement Plans