Hurricane Irma/Harvey 401k Withdrawal?

3 Replies

Wondering if anyone has done this. I didn't even realize this was an option, but saw today that I can take up to $6,000 out of my 401k for Hurricane relief with no paperwork or proof of hardship (and only a 10% tax rate). I live in the heart of Florida where Irma came through. The property didn't have any real major damage, but there are some upgrades I want to do. Would I be able to use this Relief withdraw for some upgrades?

Thanks!

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@Ryan Cole

Did you see the following regarding the hurricane Irma relief?

https://www.irs.gov/newsroom/like-harvey-retirement-plans-can-make-loans-hardship-distributions-to-victims-of-hurricane-irma

For a complete list of eligible localities, visit https://www.fema.gov/disasters. To qualify for this relief, hardship withdrawals must be made by Jan. 31, 2018.

If you participate in a full-time employer 401k plan, you will need to coordinate the distribution with your employer plan provider.

On the other hand, if you participate in a self-employed solo 401k plan, you will need to consult with your solo 401k plan provider to help navigate and coordinate

@Ryan Cole

We have had some clients in affected areas utilize the relief programs.  Check with your plan administrator or qualified advisor on what options might be available to you.

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