Electronic Signatures

[Gilmore]

Is it acceptable to sign a plan Adoption Agreement using a digital signature generated by Adobe Acrobat?

Thanks.

[Peter Gulia]

What does the sponsor of the prototype or volume-submitter document say about whether that sponsor will accept an electronic signature?

[Gilmore]

I will ask. I was thinking this might be more of an IRS requirement regardless of what the document provider says.

[Peter Gulia]

I don’t remember any Treasury department rule that precludes using an electronic signature to adopt a prototype or volume-submitter document.

If I’m right, that follows a Federal law presumption that “a signature, contract, or other record . . . [should] not be denied legal effect, validity, or enforceability solely because it is in electronic form[, or] . . . solely because an electronic signature or electronic record was used in its formation.” 15 U.S.C. § 7001(a). Although a Federal agency has some powers to prescribe standards and formats, an agency should not “require retention of a record in a tangible printed or paper form [unless] (i) there is a compelling governmental interest relating to law enforcement or national security for imposing such requirement; and (ii) imposing such requirement is essential to attaining such interest.” 15 U.S.C. § 7004(b)(3)(B).

A few recordkeepers permit, and even prefer, using electronic signatures to adopt a prototype or volume-submitter document. But others might do things differently.

[david rigby]

You might also ask the auditor for an opinion. My observation is that auditors prefer e-copies of everything.

[My 2 cents]

You might also ask the auditor for an opinion. My observation is that auditors prefer e-copies of everything.

Who gave the auditors a vote? The Adoption Agreement is valid or it is not, but it is not the auditors who get to make the call.

[david rigby]

No vote. Just an opinion.

[jpod]

Just curious, but why are you asking the Q? What is the big deal with a manual signature?