KATRINA VICTIMS CAN TAKE LOANS FROM RETIREMENT PLANS: Employer-sponsored retirement plans, including 401(k) programs, will be allowed to make loans and hardship distributions to victims of Hurricane Katrina and members of their families, the Internal Revenue Service said.For the first time ever, the IRS and the Treasury and Labor Departments are providing broad-based relief to retirement plan participants affected by a major disaster.

401(k) plan participants, employees of public schools and tax-exempt organizations with certain tax-sheltered annuities, and state and local government employees with certain deferred-compensation plans, may be eligible to take advantage of the streamlined loan procedures and hardship distribution rules. Though IRA participants are barred from taking out loans, they may be eligible to receive distributions under liberalized procedures. To qualify for this relief, hardship withdrawals must be made by March 31, 2006.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access