Employee Benefits Blog

Posts tagged Hardship distributions

Read More

Hurricane Sandy: Loans and Hardship Distributions

IRS Announces Relief from Certain Procedural Requirements Applicable to Retirement Plan Loans and Hardship Withdrawals

Qualified retirement plans are permitted to contain provisions allowing participants, under very specific terms and conditions set forth in the Internal Revenue Code and its related regulations, to (A) borrow from their defined contribution plan balances and/or (B) obtain hardship distributions of a portion of their defined contribution plan balances.  In Announcement 2012-44, the Internal Revenue Service relaxed several of these requirements to benefit participants and their families who live or work in areas devastated by Hurricane Sandy.

This relief applies only to loans and hardship distributions made on or before February 1, 2013.