The IRS has announced that 401(k) and similar retirement plans may make hardship and loan distributions to victims of Hurricane Harvey and members of their family who live and work in the disaster areas noted by FEMA as areas designated for individual assistance. In addition, the IRS has relaxed the procedural and administrative rules that normally apply to such distributions. Hardship distributions must be made on account of a hardship resulting from Hurricane Harvey and be made no later than January 31, 2018. Employers interested in offering this assistance can contact their ERISA counsel or provider to determine if an amendment to their plan is necessary. The IRS Announcement, which contains additional information, can be found at the link provided below.
Click here for the IRS Guidance.