Disaster Relief Provided Under the SECURE 2.0 Act
Thursday, January 16, 2025
The SECURE 2.0 Act of 2022 introduces new provisions offering special relief to retirement plan participants, including those in 457(b) plans, impacted by federally declared disasters. These provisions aim to provide financial flexibility and ease access
to retirement savings during times of significant hardship.
Key elements of the disaster relief provisions include:
1. Qualified Disaster Distributions: Participants can withdraw up to $22,000 from retirement plans without incurring the 10% early withdrawal penalty typically applied to distributions before age 59½.
2. Loan Repayment Delays: Repayments for new or existing loans can be delayed for up to one year for individuals in disaster areas, offering additional financial relief.
These optional provisions apply to disasters occurring on or after January 26, 2021, and they provide critical flexibility to individuals facing financial challenges due to natural disasters. Plan sponsors are encouraged to amend their retirement plans
to incorporate these provisions, ensuring participants can take advantage of the relief options. Participants should consult a financial advisor or tax professional to understand the implications and opportunities for their specific situations.
If you have questions regarding this article, contact Javier Obando, Retirement Plan Consultant at Sage View Advisory Group. Javier M. Obando |Retirement Plan Consultant | SageView Advisory Group Phone: 415.385.8969; Email: jobando@sageviewadvisory.com
Javier Obando is a Director and Retirement Plan Consultant at SageView Advisory, specializing in the management of 457, 403(b), 401(k), and 401(a) governmental retirement plans. With over 28 years of experience in the field, Javier has focused on governmental retirement plans since 1997. He is an active member of the National Association of Government Defined Contribution Administrators (NAGDCA), where he serves on the NAGDCA Awards Committee. In this role, he evaluates submissions from over 60 cities, counties, states, and special districts, assessing plan design, administration, participant education, communication, and initiatives to promote financial wellness.
Additionally, Javier is a member of the California Society of Municipal Finance Officers (CSMFO) and serves on its Professional Standards Committee. He has also presented at various CSMFO chapter meetings on topics such as Financial Wellness and Fiduciary Responsibility in managing 457 and 401(a) plans.
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