Relief for Plan Sponsors and Participants Affected by Hurricane Harvey
The IRS issued Announcement 2017-11 for participants and plan sponsors affected by Hurricane Harvey.
Specifically:
LOANS AND WITHDRAWALS
Plans that do not have the language may grant loans and/or hardship withdrawals between August 23, 2017 and January 31, 2018. The plan administrator can grant the loan or hardship withdrawal before the normal document and procedure requirements are satisfied. If applicable, normal spousal consent rules continue to apply.
The 6-month employee deferral suspension normally required for hardship withdrawals are not applicable.
CONTRIBUTIONS
The Dept Of Labor will not consider it a violation if the contribution / loan repayment deposit is delayed solely due to Hurricane Harvey, provided the employer and payroll provider act prudently to deposit the funds as soon as practicable.
NOTICES
The DOL will not treat a violation for failure to give notice of blackout periods related to Hurricane Harvey.
The IRS and Dept of Labor encourage employers to make reasonable accommodations for employees to avert the loss of benefits, and they will give grace periods where appropriate when it is not possible to be in compliance with the plan’s pre-established time frames under the plan’s normal claim and appeal procedures due to Hurricane Harvey.
Solo 401k Plan: Your Opportunity for Checkbook Control of Your Future
No comments:
Post a Comment