How Remote Witnessing Helps Plan for Retirement

Financial advisors are increasingly tasked with helping clients manage retirement in a digital-first economy. With consumers becoming more mobile and technology improving access to financial services, there is a growing need for online tools to meet these demands. Recent changes at the IRS now allow remote witnessing to complete spousal consent waivers, making it easier to manage retirement plans online.

Federal laws require married couples to obtain spousal consent before making certain changes to qualified retirement plans, such as withdrawals or naming a beneficiary. The Retirement Learning Center Resource Desk at the National Association of Plan Advisors recently addressed whether remote witnessing is allowed for spousal consent waivers:

A plan participant would like to use an online notary for a spousal consent waiver for a distribution. Is this permitted?

Yes, a properly executed remote spousal consent waiver is permissible and can be used if the terms of the plan document allow for electronic witnessing. A rule, REG–114666–22, proposed by the IRS revised the physical presence requirement for spousal consent waivers in Treasury Regulation 1.401(a)-21(d)(6). Remote witnessing by a notary public or a plan representative are now permissible alternatives.

With this IRS guidance, plan sponsors can now offer participants the flexibility to meet with a notary online to complete a spousal consent waiver. Several retirement plan providers are already leveraging Proof, which powers Notarize, to digitize these transactions and streamline what was previously a process slowed by in-person meetings and paper documents.

Digitizing Your Spousal Consent Workflow

Digitizing the spousal consent workflow does more than improve customer satisfaction. The IRS guidance creates a clear path, but plan sponsors who don't update their workflows risk compliance exposure and participant risk.

Notarize by Proof allows participants to connect with a notary online in minutes, 24/7, from anywhere, replacing the need for in-person meetings and paper documents.

What Online Notarization Adds to Your Spousal Consent Workflow

Digitizing your spousal consent workflow with Proof delivers measurable operational gains:

Reduced NIGO Scores

Fewer "Not In Good Order" rejections mean fewer costly delays from documents submitted with common errors, and faster resolution when corrections are needed.

Stronger Fraud Prevention

Online notarization enhances identity verification workflows, providing a significant improvement over traditional in-person notary experiences. Spouses using Proof to meet with an online notary undergo a multi-step identity check that improves on the traditional process. In most cases, a signer will experience:

• ​A multi-step identity verification process including knowledge-based authentication (KBA) and credential analysis, which checks the validity of a government-issued ID, with final identity validation by a live notary
• ​Verification based on the notary's personal knowledge of the signer's identity
• ​Identity verification by an oath made by a credible witness

Audio-Visual Recording of the Signing Session

This recording captures what the signer looked and sounded like when signing the document. It can be reviewed later if there is ever a question about the transaction.

Tamper-Evident Technology

Document integrity is protected from the moment the session ends. The platform also provides a comprehensive audit trail with the date and time of every signer action.

Notary Authority to Terminate

The notary can end the session immediately if they suspect fraud or coercion, adding a critical human check to the automated process.

These steps are central to online notarization and are designed to give spouses and retirement plan providers confidence when completing transactions through Proof.

The IRS guidance outlines a series of requirements plan sponsors must meet to onboard remote witnessing. Proof has partnered with several leading retirement plan providers and has the tools to help organizations meet compliance needs.