IRS Allows E-Signatures to Speed Emergency 401(k) Withdrawals

The Trump administration is relaxing rules that govern emergency access to work-sponsored retirement accounts as part of its virus-related relief efforts.

Employees will no longer have to give in-person consent or sign paperwork in the presence of a notary public or plan representative as required by current law. The changes allow them to either e-sign documents in states allowing remote notarization or indicate their preferences on teleconference calls, with certain conditions.

The change is needed to “facilitate the payment of coronavirus-related distributions and plan loans” to cash-strapped workers quarantining at home during the global pandemic, IRS officials said. Regulators want ...