IRS to Draft Form for Katrina-Related Distributions, Recontributions

The IRS has issued news release IR-2005-122, which briefly summarizes the tax-related relief Congress enacted for victims of Hurricane Katrina, including retirement savings arrangement distributions and recontributions.  Announced in the release is that the IRS is in the process of drafting a new taxpayer form – Form 8915, Qualified Hurricane Katrina Retirement Plan Distributions and Repayments.

The news release describes the penalty-free pre-59½ access to IRA and qualified plan assets to a maximum of $100,000, exemption from 20 percent withholding for such distributions from qualified retirement plans, liberalized access to loan and hardship distributions, and recontribution of distributions associated with certain failed home purchases. 

The news release may be accessed at http://www.irs.gov/newsroom/article/0,,id=149669,00.html