As part of its relief package, Congress introduced yesterday a bill that would permit Hurricane Katrina victims to make hardship cash withdrawals or loans from their 401(k)-type plans, even if the provision doesn't currently exist in their plan.

The withdrawal proposal comes from the desks of Senate Finance Committee Chairman Sen. Charles Grassley, R-Iowa, and ranking member Sen. Max Baucus, D-Mon, who worked closely with the IRS and the ASPPA, a leading organization of retirement plan professionals. President Bush is expected to approve the bill when it reaches his desk.

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