It’s not clear how many people would benefit from a waiver of the 401(k) withdrawal penalty, and that raises questions about its likely utility, said Gordon Gray, director of fiscal policy at the American Action Forum, a center-right think tank in Washington, D.C.
“You’re not talking about a whole lot of people,” Gray said.
The federal government has numerous disaster-relief programs for individuals, including housing grants and loans, unemployment compensation and business loans. State and local governments and charities such as the American Red Cross also help with services such as shelters, food and water.
“Nowhere in there do I really see a screaming need to introduce the 401(k) issue,” Gray said. “If the idea is to have liquidity, for what? If it’s for food and shelter, the response system is designed to ensure those needs are met.”
Brady also said he was looking at increasing limits on tax deductions for casualty losses for people affected by Harvey and Irma, and increasing write-offs for rebuilding costs.
“This won’t be boilerplate,” Brady said. “We’re going to tailor these to our communities and their needs going forward.”