Legislation that would make available roughly $15 billion in federal aid for Hurricane Harvey and other disaster victims has passed both the U.S. House and Senate and is on its way to President Trump for signature. Still unknown at this time is whether this contains relief or special considerations for retirement plan and IRA distributions, which in the past has followed certain major hurricanes or disaster events.
The bill contains approximately $7.4 billion in direct aid to Hurricane Harvey victims, $450 million for Small Business Administration (SBA) efforts to help recovering businesses, and $7.4 billion in “block grants” to states to be used for this and other disaster events in 2017. The legislation also extends for three months authorization for federal agency funding, which was about to expire and threatened federal agency shutdown, and temporarily raises the federal debt limit.
Following certain other past disasters events, such as Hurricane Katrina, legislative efforts have granted special access and treatment of distributions from, and later repayment to, tax-advantaged retirement savings arrangements. Watch this ascensus.com News for further developments.