Stroock Special Bulletin
"IRS Relaxes Retirement Plan Loan and Hardship Distribution Requirements for Sandy Victims"
The Internal Revenue Service ("Service") has provided relief to victims of Hurricane Sandy who have retirement assets in certain qualified employer plans, by relaxing the rules relating to hardship distributions and loans from those plans, as described in Announcement 2012-44 (the "Announcement").
This Stroock Special Bulletin provides an overview of the relief provided by the Announcement, which applies not only to plans that currently have loan and hardship provisions, but also to plans that could, but do not currently, offer loans and hardship distributions. In addition, the relief is available to plan participants who are themselves a victim of Hurricane Sandy or who have a family member (child, parent, spouse or dependent) affected by Hurricane Sandy.