People walk down a flooded street as they evacuate their homes after it the area was inundated with flooding from Hurricane Harvey on August 27, 2017 in Houston, Texas.
And typically, hardship distributions also come with a six-month ban on new contributions. The IRS is waiving that. To qualify for relief, the agency says distributions must be made between Aug. 23, 2017, and Jan. 31, 2018.
Loans generally come with no tax implications if they are repaid within five years. However, as with early withdrawals, loans remove money from investments intended to grow and provide income to you in retirement.