Karen Gelula Provides Insight on SECURE 2.0 Disaster Relief Options for 401(k) Holders With Bloomberg Law

Benefits and executive compensation counsel Karen Gelula spoke to Bloomberg Law about how some victims of Hurricanes Helene and Milton are looking to tap into their 401(k)s to cover the cost of repairs and temporary housing.

Provided by under the 2022 SECURE 2.0 Act, employers who adopt new optional tax-qualified disaster relief can withdraw up to $22,000 for a qualified 401(k), 403(b) or individual retirement account, the publication noted. Retirement plans have until 2026 to formally adopt amendments under SECURE 2.0, meaning companies still have time to allow for disaster recovery distributions retroactively. Gelula said plan sponsors and IRA providers should poll their employees to gauge what kind of loan relief best suits their needs.

“This is going to become part of the way companies communicate with and educate their workers,” Gelula noted.