Hardship Distributions May Be Permitted for Maine Severe Storm
The Federal Emergency Management Agency (FEMA) issued a disaster declaration on March 22, 2023, for severe storm and flooding in Maine, for the incident period of December 23, 2022 – December 24, 2022.
Employers with qualified retirement plans may allow participants to take hardship distributions if they have incurred expenses and losses because of a FEMA-declared disaster, and their principal residence or place of employment at the time of the disaster is located in an area designated by FEMA as eligible for individual disaster assistance.
If the employer permits hardship distributions for expenses and losses related to a federally declared disaster, participants can check fema.gov/locations to determine if they are located in a disaster area designated for individual assistance.
The IRS may also issue relief related to this disaster for certain tax-related deadlines. Additional information can be found at the IRS Tax Relief in Disaster Situations website and will be announced here if such relief is granted.
