"Signature" Feature in Adobe and other PDF software

I'm just discovering the "signature" feature in my pdf software (I use Kofax f/k/a Nuance).  I am curious to know if we can tell clients it is ok to sign plan documents using this feature.  From my brief readings what I am finding is that it is actually much more secure than a regular ink signature because the signature itself is able to tied back directly to the signers own credentials (some crazy encryption-like key).

I'm curious to know if anyone has ever researched this or has found an article about its use in legal documents, whether the IRS will accept it, etc.

Yes, apparently has been ok for some time; we just started a few months ago.

We use it. I sign IRS forms all the time and have never had an issue.

9 minutes ago, Bill Presson said:

We use it. I sign IRS forms all the time and have never had an issue.

I thought the IRS only had a very short list of forms that were approved for electronic signature...  

To be clear, Im talking about a digital signature like DocuSign, not an image of your actual signature that is digitally added to the form.

16 minutes ago, RatherBeGolfing said:

I thought the IRS only had a very short list of forms that were approved for electronic signature...  

To be clear, Im talking about a digital signature like DocuSign, not an image of your actual signature that is digitally added to the form.

I add it like a wet signature, not docusign.

yeah to be clear it is the "Signature" feature within the software.  I suppose Docusign is more robust becauyse the signature is maintained by a 3rd party but this system is more robust than an ink signature because you can 100% verify that a particular user signed the document (it's someone how tied to my windows log in).

I don;t profess to fully understand it which is why I was also hoping some law firm wrote an article about this...

I have used the signature feature in Acrobat for years, never had an issue.  

DocuSign type digital signatures are common for contracts, but are only accepted on a short list of IRS forms.  Ft Williams uses a DocuSign type e-signature in their Distribution Tracking Software.  Some RK forms specifically say Acrobat digital signature not accepted.  You can use the digital image of your signature to sign it, but not the DocuSign type signature. JH will accept a form signed with DocuSign, but only after confirming with the person who signed it

If we're talking about participant elections, and not just plan documents, don't forget about 1.401(a)-21.

Also, Schedule SB's still require wet signatures?

We are (finally!) going to e-signatures using DocuSign. Ftwilliam has a white paper citing specific Rev Procs that all e-signature for prototype and volume submitter. I'm attempting an attachment...E-signatureWhitePaper.pdf

15 minutes ago, CarolC said:

We are (finally!) going to e-signatures using DocuSign. Ftwilliam has a white paper citing specific Rev Procs that all e-signature for prototype and volume submitter. I'm attempting an attachment...E-signatureWhitePaper.pdf

Very helpful whitepaper, CarolC. Thankyou.