Annuity & Savings Plan

Hardship Distribution and Supporting Documentation

  VI.  Expenses for the Repair or Damage to the Employee’s Principal Residence that would Qualify
  for an IRS Casualty Deduction

A.  You may receive a hardship distribution for the following items, which fall under the definition of “casualty” for your principal residence:

• Earthquakes
• Fires
• Floods
• Government-ordered demolition or relocation of a home that is unsafe to use because of a disaster
• Landslides
• Mine cave-ins
• Shipwrecks
• Sonic booms
• Storms, including hurricanes and tornados
• Terrorist attacks
• Vandalism
• Volcanic Eruptions
• Any loss attributable to a disaster occurring in an area subsequently determined by the President of the United States to warrant assistance by the Federal Government.

B.  The following items do not qualify for hardship treatment:

    Progressive deterioration:

• The steady weakening of a building due to normal wind and weather conditions.
• A burst water heater (however, the rust and water damage to rugs and drapes caused by the bursting of a water heater does qualify as a casualty)
• Losses caused by droughts
• Termite or moth damage
• The damage or destruction of trees, shrubs and other plants by a fungus, disease, insects, worms or similar pests.

C.  If you request a hardship distribution for the repair or construction of your principal residence due to damage caused by a qualifying casualty, you must have documentation to support your request. HRSA-ILA requires that you produce this documentation when you apply. If you cannot produce the documentation to substantiate> your hardship request, your application will be denied. Complete the Worksheet for Hardship Withdrawal for Expenses for Casualty Repairs. The following documentation is acceptable:

1. For the payment of unreimbursed costs of qualifying casualties to repair a damaged
principal residence:

• Bill for services from the contractor
• Statement from the insurance carrier evidencing a denial of coverage of the cost of repairs.

2.  If you are required to prepay certain repairs/construction:

• Estimate from the contractor
• Statement from the insurance carrier evidencing a denial of coverage of the costs of repair

3.  For the building of a principal residence destroyed by the casualty:

• Executed contract between you and the contractor (which may include dates and amounts of periodic disbursements to the contractor)
• Statement from the insurance carrier evidencing a denial of coverage of the cost of construction