Guidance Explains How Katrina Victims Can Access Their Retirement Savings

Guidance Explains How Katrina Victims Can Access Their Retirement Savings: "Guidance Explains How Katrina Victims Can Access Their Retirement Savings


Dec. 1, 2005 (SmartPros) -- The Internal Revenue Service issued guidance relating to the application of two provisions of the Katrina Emergency Tax Relief Act of 2005 (KETRA) for Hurricane Katrina victims and employer-sponsored retirement plans and IRAs.

Under one provision of KETRA, individuals who live in one of the four states affected by Hurricane Katrina and who suffered an economic loss as a result of that hurricane receive favorable tax treatment with respect to distributions from eligible retirement plans that are qualified Hurricane Katrina distributions, called 'Katrina distributions.'"