Federal Register - "Hardship Distributions of Elective Contributions, Qualified Matching Contributions, Qualified Nonelective Contributions, and Earnings"
EPA disasters - Knowledge Mosaic RSS 2019-09-23
Summary:
Title: Hardship Distributions of Elective Contributions, Qualified Matching Contributions, Qualified Nonelective Contributions, and Earnings Source: Federal Register Data/Action: Treasury Department (Final Rule) Date: 9/23/2019 Text Preview: ...available only to the extent the loss is
attributable to a federally declared disaster (as defined in section
165(i)(5)).
Section 826 of the Pension Protection... ...disasters.
Several commenters observed that this new safe harbor expense,
which is described in the preamble to the proposed regulations as
similar to relief provided by the IRS after certain major federally
declared disasters, is narrower in certain respects than this past IRS
relief and asked for confirmation that the narrowing is intentional.
Some commenters also raised the concern that the new safe harbor
expense would lead the IRS to discontinue its practice of issuing
announcements providing such relief. The effect of the new safe harbor
expense differs from the disaster-relief... ...disaster-related expenses and losses of an employee who
lived or worked in the disaster area will qualify for the new safe
harbor expense, and not, as under the disaster-relief announcements,
expenses and losses of the employee's relatives and dependents. The
Treasury Department and IRS have concluded that limiting distributions
only to those employees directly affected by a disaster is consistent
with the purposes underlying the Code's hardship distribution
provisions and better aligns with the relief given to affected
individuals under section 7508A for similar disasters...