CA Unemployment Insurance

[mymimis]

What is the name of your state (only U.S. law)? CA
I'm currently receiving UI after being fired from my job last fall. I've been searching for a new job and still haven't been able to find one. My savings are supplementing my UI for groceries, gasoline, etc. and soon that will be running out. I may have to dip slightly into my IRA to make ends meet. My question is: if so have to withdraw from my IRA rollover account, does it have to be reported as income, or is it like withdrawing from a savings account, which is not considered income?


Thank you

 

[Willlyjo]

What is the name of your state (only U.S. law)? CA
I'm currently receiving UI after being fired from my job last fall. I've been searching for a new job and still haven't been able to find one. My savings are supplementing my UI for groceries, gasoline, etc. and soon that will be running out. I may have to dip slightly into my IRA to make ends meet. My question is: if so have to withdraw from my IRA rollover account, does it have to be reported as income, or is it like withdrawing from a savings account, which is not considered income?


Thank you

Like most IRA's that I'm aware of, when the money goes in, it isn't taxable but when it comes out it is.

 

[commentator]

The answer is that an emergency withdrawal from an IRA is not considered reportable income. BUT ---To be completely on the correct side, I strongly suggest that you call the California unemployment system and keep trying till you talk to a living human being.( Yes, it can be done, it is possible.) And also, get that person's name if possible and the date you spoke to them. Be very specific about what you are doing, ask them this same question and get their formal answer. Hang on to that paper where you write down who you talked to and when. We had one poor lady here, I believe it was in California, and she got in terrible trouble with them because she had called and gotten the wrong answer and got very overpaid.

But in general, no, withdrawals from an IRA, done because you need the money now, not because you are starting to get it as a regular monthly stipend or anything, are not reported as income, because it's not INCOME per se that they want you to report, it's wages you made working. So it wouldn't matter if you had a working spouse who made thousands a week. Technically, you could win the lottery and get the money iin a lump sum one week and still be eligible, as long as you didn't remove yourself from the labor force. They don't give it to you based on your income.

In most state systems, there is also a question about retirement pensions when you make your weekly certification for benefits, but since you are not going to start receiving it as a regular pension, but rather taking it out to get by, it will not be considered in your weekly benefits. This also includes Social Security retirement money, but I suspect that's not an issue here.

 

[mymimis]

Like most IRA's that I'm aware of, when the money goes in, it isn't taxable but when it comes out it is.

Thank you, for your response. My actual question is, do I have to report it as income to the EDD on my weekly claim?

 

[commentator]

My answer is NO, based on the circumstances you have given us here. However, I am also telling you to get this asked of the California system and get it officially answered by them.

Whether or not it is taxable is not the issue. It is whether or not it is wages for work performed or a pension about to be drawn by the employee based on wages paid.

 

[Willlyjo]

Thank you, for your response. My actual question is, do I have to report it as income to the EDD on my weekly claim?

Commentator is right! You do not have to report it as income regarding the weekly claim forms from EDD. I assumed your question was about your concern regarding taxes and withdrawal from your IRA. It didn't hurt to give you that information as well (which you are probably aware of anyway).