‘TEXANS IMPACTED BY HURRICANE HARVEY AND WHO ARE STILL REBUILDING HAVE UNTIL THE END OF THE YEAR TO ACCESS THEIR SAVINGS WITHOUT A PENALTY’

Congressional Documents & Publications

WASHINGTON, D.C. - U.S. Sen. Ted Cruz (R-Texas) today reminded Texans impacted by Hurricane Harvey who are still rebuilding their homes and businesses that they have until the end of the year to access their retirement accounts without having to pay the ten percent penalty that typically applies. Retirement account withdrawals must be made by December 31, 2018.

The full video transcript is below, and may be viewed here https://www.youtube.com/watch?v=JPnd_mVRpDQ&feature=youtu.be.

"Last year, millions of Texans across the Gulf Coast felt the terrible impact of Hurricane Harvey. In the aftermath of Harvey's destruction, we saw homes damaged beyond repair, causing financial hardship for so many Texans. We also saw members of Congress in Washington unite to pass crucial legislation to respond to the hurricane, including a hurricane tax relief bill that I authored along with Senator Cornyn and Senator Rubio which provided significant tax relief for survivors of Hurricanes Harvey, Maria, and Irma. The Cruz-Cornyn-Rubio legislation passed with bipartisan support and was signed into law by President Trump. An important part of this bill eliminated the tax penalty for hurricane survivors who wanted to withdraw from your retirement accounts to pay for the costs of repairs from storm damages.

"So, those hit by the disastrous hurricanes now have the ability to withdraw money from your 401k plans or any other retirement plans in order to rebuild from the storm without having to pay the ten percent penalty that typically applies. But retirement account withdrawals must be made by December 31, 2018. That deadline is coming up. Texans impacted by Hurricane Harvey who are still rebuilding have until the end of this year to access your savings without a penalty. I strongly urge my fellow Texans, if you are still in the process of rebuilding and recovering from the ravages of Harvey, to contact your tax advisor or for more information go to the IRS website at irs.gov.

"I am encouraged by the progress we've seen over the past year, but the road to recovery continues. I will continue working hard each and every day to ensure that Texas communities still suffering from Hurricane Harvey receive the help they need. Together, we can and we will rebuild even stronger than before."