Regulatory Updates
Regulatory Updates provide quick access to employee benefit regulations, rulings and other guidance released by governmental agencies in the U.S. and Canada.
New updates to this page may be included in Today’s Headlines which is emailed to International Foundation members each business day. Inquiries regarding these updates should be directed to the Benefits Knowledge Center at the International Foundation at (888) 334-3327, option 5 or [email protected].
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IRS Issues FAQs on Disaster Relief Under SECURE 2.0
May 6, 2024, 05:00
by
Amanda Wilke
The Internal Revenue Service (IRS) issued frequently asked questions (FAQs) in Fact Sheet 2024-19, relating to rules for distributions from retirement plans and IRAs and for retirement plan loans, for certain individuals impacted by federally declared major disasters.
The FAQs relate to the SECURE 2.0 Act of 2022 (SECURE 2.0) provision that provides for ongoing disaster relief for certain distributions and loans in the case of federally declared major disasters. Prior to the changes made by SECURE 2.0, there was no disaster relief allowing these distributions and loans that applied generally for all major disasters.
The FAQs are intended to assist individuals, employers, and retirement plan and IRA service providers, and they are divided into four categories:
- General information;
- Taxation and reporting of qualified disaster recovery distributions;
- Repayment of qualified distributions taken for the purpose of purchasing or constructing a principal residence in a qualified disaster area; and
- Loans from certain qualified plans.