Bridging the Gap for Disaster Victims with New SECURE 2.0 Act Options

by Prof. Robert Bloink and Prof. William H. Byrnes

Hurricanes Debby, Helene and Milton have caused widespread damage across Florida and much of the Southeastern United States in recent weeks. As affected taxpayers begin to put their lives back together again, many are encountering unprecedented financial costs even before their insurance claims can be submitted and processed. These taxpayers should be advised about the significant changes made by the SECURE Act with respect to disaster-related distributions from retirement accounts. Many taxpayers may qualify to take penalty-free distributions and can benefit from expanded retirement plan loan opportunities in the wake of these disasters. Understanding the rules and repayment options can provide valuable assistance to impacted taxpayers in the wake of these back-to-back natural disasters.

SECURE Act 2.0 Changes to Disaster Distribution Options