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EBSA News Release: [09/15/2005]
Contact Name: David
James or Gloria Della
Phone Number: (202) 693-4676 or x8664
Release
Number: 05-1728-NAT
U. S. Labor Department Action Helps Hurricane Victims
Access 401(k) Plans
WASHINGTON—Today the U.S. Department of Labor's Employee Benefits
Security Administration (EBSA), along with the Internal Revenue Service
(IRS), announced guidance for employers and plan officials to help victims
of Hurricane Katrina obtain distributions and loans through 401(k) and similar
employer-sponsored plans.
“Helping Hurricane Katrina's survivors get back on their feet is our highest
priority,” said Secretary of Labor Elaine L. Chao. “These actions will make
it easier for those in need to get hardship withdrawals and loans from their
401(k)s and similar plans so they can begin rebuilding their lives.”
The Department of Labor will not treat any person as having violated the
provisions of title I of the Employee Retirement Income Security Act solely
because they complied with the provisions of IRS Announcement 2005-70. The
IRS announcement, in conjunction with the DOL statement, expands the circumstances
under which hardship and loan distributions can be made from a plan to participants
and beneficiaries affected by the hurricane. The announcement also
eliminates the need for obtaining otherwise required documentation in advance
of a hardship or participant loan distribution.
The Labor Department and IRS will continue to monitor the situation to address
those issues that are most important in helping individuals, employers, and
plan sponsors recover from this tragedy. Further guidance will be forthcoming.
For more information on Hurricane Katrina relief, contact the department
at 1-866-4USA-DOL or EBSA at 1-866-444-3272. Questions
about the IRS announcement should be directed to the IRS at 1-877-829-5900.
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