Hurricane Harvey Victims Get a Helping Hand or Three
September 5, 2017
The IRS announced on August 30, 2017, that participants in 401(k) plans, 403(b) tax-sheltered annuities, and 457(b) deferred compensation plans may be able to use newly announced streamlined rules to alleviate the financial hardships caused by Hurricane Harvey with loans and hardship distributions. In Announcement 2017-11, the IRS provides that affected plan sponsors will be relieved from normally required verification procedures for loans and hardship distributions in order for participants in areas adversely affected by the massive storm to speed and ease their recovery. Hardship distributions made pursuant to this Announcement must be made on or after August 23, 2017 and no later than January 31, 2018.