In Announcement 2005-70, the Internal Revenue Service has determined that a qualified employer plan can make loans and hardship distributions to persons affected by in the plan documents do not presently permit such payments.
In Announcement 2005-70, the Internal Revenue Service has determined that a qualified employer plan can make loans and hardship distributions to persons affected by in the plan documents do not presently permit such payments. Payments can be made to employees or former employees if their principal residence or place of employment on August 29, 2005 (or if the principal residence or place of employment of a lineal ascendant or descendant, dependent or spouse) was located in a county or parish in Louisiana, Mississippi or Alabama, that has been designated as a disaster area.
For more information regarding the types of plans covered by the Announcement and other rules and restrictions regarding the loans or distributions, please contact Margaret Bernardin at 407-418-4365 or any member of the Ford & Harrison Employee Benefits Group.