In the wake of Hurricane Irma, the IRS has issued a number of benefits, similar to those extended after Hurricane Harvey, to business owners and their employees participating in a 401(k), 403(b), Defined Benefit or other type of company sponsored retirement plan.
Available Retirement Plan Benefits for Business Owners and Their Employees Affected by Hurricane Irma:
• The IRS has relaxed procedural and administrative rules that normally apply to retirement plan loans and hardship withdrawals.
• The Retirement Plan can ignore certain restrictions that normally apply to hardship distributions and participant loans providing easier access to more owners and employees. For example, retirement plan participants can take a hardship withdrawal to be used for food and shelter (this wouldn’t be an acceptable hardship under normal withdrawal rules).
• Participants of 401(k) Plans (and other types of company sponsored retirement plans), affected by Hurricane Irma, are automatically approved to obtain a hardship withdrawal and/or participant loan from their 401(k) Plan. This means that business owners and their employees can access their retirement monies as financial assistance for recovery from this disaster and other basic needs.
• It also means that a person who lives outside the disaster area can take out a retirement plan loan or hardship distribution and use it to assist a son, daughter, parent, grandparent or other dependent who lived or worked in the disaster area.
• Business owners also have additional time to file IRS Form 5500, the informational return due to the Department of Labor and IRS.
Such relief must be requested on or before January 31, 2018. Leading Retirement Solutions is helping 401(k) participants and business owners, affected by Hurricane Harvey and Hurricane Irma, with these relief requests and providing access to their retirement monies for disaster recovery and basic needs.
See our previous alert regarding Hurricane Harvey relief, available to those affected, if requested by January, 2018