IRS Relaxes Rules for Using IRA Money for Disaster Victims

The IRS has relaxed rules for borrowing from employer-sponsored plans like 401(k)s and similar plans like 403(b) and 457(b) for victims of the recent hurricanes. You may also qualify to take advantage of a hardship distribution. Participants who live or work in disaster areas should be able to access their money with a minimum of red tape. In addition, the six-month ban on 401(k) and 403(b) contributions that normally affect employees who take hardship distributions will not apply.

Details and criteria can be complex. If you need to free up some of your retirement money for recovery start by contacting your plan administrator. For more information from the IRS go here: https://www.irs.gov/newsroom/like-harvey-retirement-plans-can-make-loans-hardship-distributions-to-victims-of-hurricane-irma

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