Thanks to the damage caused by Hurricane Harvey and Hurricane Irma, the Internal Revenue Service (IRS), Department of Labor (DOL), and the Pension Benefit Guaranty Corporation (PBGC) have granted extensions of certain deadlines for both plan sponsors and participants directly affected by these hurricanes.
The IRS has also provided special rules for plan sponsors that want to offer hardship distributions or plan loans to employees or former employees that have been affected by Hurricane Irma. These rules apply to all qualified plans, 403(b) plans, and governmental section 457 plans.
Loans and hardship distributions will not be limited to plan sponsors or individuals living in the affected areas. Under this IRS relief, loans and hardship distributions may be made available to employees and former employees who live or work in affected areas, or whose family members were directly affected by the disaster.
Loans granted under this special relief continue to be subject to standard loan limits.