IRS Relaxes Rules for Plan Loans and Hardship Distributions for Hurricane Harvey and Hurricane Irma VictimsSeptember 26, 2017
The IRS announced (through the two announcements 2017-11 and 2017-13) relief for victims of Hurricane Harvey, which struck Texas and surrounding areas in August 2017, and victims of Hurricane Irma, which struck Florida and other areas in September 2017, allowing participants to more easily take a plan loan or a hardship distribution from qualified retirement plans.
The IRS will permit 401(k) plans, 403(b) plans, and certain other qualified plans to make plan loans through more streamlined procedures and hardship distributions under liberalized rules to participants and their family members who on August 23, 2017 had a principal residence or place of employment in disaster areas that were impacted by Hurricane Harvey and who on September 4, 2017 had a principal residence or place of employment in disaster areas that were impacted by Hurricane Irma, so long as those disaster areas were among those listed as eligible for individual FEMA assistance. A complete list of eligible disaster areas for which individual assistance is available can be found at FEMA’s website (https://www.fema.gov/disasters).
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