Should You Borrow From Your 401(k) in the Event of a Disaster?
Hurricanes Harvey and Irma have caused major destruction, and it's taking a toll on the wallets of those affected. Roughly 80% of the victims of Harvey don't have flood insurance to cover the damage to their homes and belongings, and the damage from Harvey alone is estimated to cost up to $190 billion. That money has to come from somewhere.
Typically, financial experts advise against borrowing from your retirement savings to cover expenses -- even in the case of an emergency. But the rules change when it comes to extreme disasters, such as hurricanes.
After Harvey and Irma affected millions of people and left thousands homeless, the IRS relaxed its rules on 401(k) loans and withdrawals to make it easier for these people to get their lives back on track after the hurricane.
Source: Fool.com
