Hurricane Katrina: IRAs, sec. 401(k)s and similar retirement plans.(individual retirement accounts)

Tax Adviser, The, January, 2006 by Wimer, Ruth

Under the Katrina Emergency Tax Relief Act of 2005 (KETRA), individuals living in the Hurricane Katrina disaster area (see Exhibit 3 on p. 9) with economic losses resulting from it, may be able to obtain relief through IRAs and Sec. 401(k) and similar plans.

Withdrawals

According to KETRA Section 101, affected individuals may be able to withdraw up to $100,000 from an IRA, Sec. 401(k), Sec. 403(b), governmental Sec. 457 or similar employer-sponsored retirement plan, without being subject to the Sec. 72(t) 10% penalty on early withdrawals; see JCX-69-05 (9/22/05), p. 3, and Notice 2005-92.

Eligibility requirements: To be eligible to make the withdrawal, the individual must have:

* Been living in the Hurricane Katrina disaster area on...

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