Heeding a request from U.S. Sen. Bill Cassidy (R-LA), the IRS granted relief tools on Tuesday to help Louisianans recover from flood damage.
The IRS announced that it would grant a regulatory waiver that provides penalty-free early access to retirement funds to those impacted by the Louisiana floods to help aid recovery efforts.
“This hardship waiver will be critical for helping Louisianans get back on their feet quickly,” Cassidy said. “As so many of those affected in this area did not have flood insurance, every tool possible needs to be implemented to allow them access to much needed emergency funds.”
Cassidy requested the hardship waiver in a letter to IRS Commissioner John Koskinen on Aug. 18.
The flooding impacted 70,470 Louisianans, Cassidy wrote, and more than half of them had inadequate resources to repair damages and recovery.
“The purpose of such hardship waivers or retirement plan loans should encompass repair or replacement of a home or for the installation of mitigation measures to protect against future floods,” Cassidy wrote. “I also urge that regulatory relief be applied to individuals living outside the declared disaster area who can take out a retirement plan loan or hardship distribution to use to assist a son, daughter, parent, grandparent or other dependent who lived or worked in the disaster area.”
Similar hardship waivers were granted in the wakes of Hurricane Katrina and Hurricane Sandy.