Hurricane Harvey Hardship Loans

Sept 2017 The Internal Revenue Service announced that 401(k)s and similar employer-sponsored retirement plans can make loans and hardship distributions to victims of Hurricane Harvey and members of their families. Similar relief was provided last year to Louisians flood victims and victims of Hurricane Matthew.

Those who participate in 401(k) plans, employees of public schools and tax-exempt organizations with 403(b) tax-sheltered annuities, and state and local government employees with 457(b) deferred-compensation pland may be able to take advantage of these loan procedures and liberalized hardship distribution rules. IRA participants are barred from taking out loans, but may be eligible to receive distributions under liberalized procedures.

Retirement plans can provide this relief to employees and certain members of their families who live or work in disaster areas affected by Hurricane Harvey and designated for assistance by (FEMA). For a complete list of eligible counties, visit https://www.fema.gov/disasters
Hardship withdrawals must be made by Jan. 31, 2018.

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