More IRS Benefit Plan Guidance for Hurricane Katrina Relief

IRS Announcement 2005-70 relaxes rules for loans and hardship distributions from 401(k), profit sharing, 403(b) and 457(b) plans. Defined benefit, money purchase and nonqualified plans are generally not affected by this release.

For the counties and parishes of Louisiana, Alabama and Mississippi that have been declared Hurricane Katrina disaster areas by FEMA (see, http://www.fema.gov/press/2005/katrinaassistance.shtm), relief is available to:

• employees and former employees 
• dependents and spouses 
• lineal ascendants or descendents (e.g. parents) who have a principal residence or a place of employment in such counties or parishes.