The Internal Revenue Service is allowing 401(k) and similar employer-sponsored retirement plans to make loans and hardship distributions to victims of Hurricane Sandy and members of their families as part of the Obama administration’s efforts to bring all available resources to bear to support state and local partners affected by Hurricane Sandy.

The IRS said that 401(k) plan participants, employees of public schools and tax-exempt organizations with 403(b) tax-sheltered annuities and state and local government employees with 457(b) deferred-compensation plans may be eligible to take advantage of these streamlined loan procedures and liberalized hardship distribution rules.

While IRA participants are barred from taking out loans they may be eligible to receive distributions under liberalized procedures.

Retirement plans can provide this relief to employees and certain members of their families who live or work in the disaster area.  To qualify for this relief hardship withdrawals must be made by February 1, 2013.

This story provides additional information.