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  1. #1
    ogm
    ogm is offline Junior Member
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    withdrawal from IRA affects unemployment benefits?

    I am in TEXAS and am currently receiving unemployment benefits. If I withdraw one lump sum from my (traditional) IRA account, how will that affect my unemployment benefits? Example, will it lower it or altogether stop it?
  2. #2
    ecmst12 is offline Senior Member
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    It may be considered income or it may not. The best people to ask this question would obviously be the unemployment board, have you tried asking them?
  3. #3
    pattytx is offline Senior Member
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    I don't think so, because the withdrawal is not earnings, it's a return on investment plus your own money.

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  4. #4
    RufusQuail is offline Junior Member
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    Thumbs down Bad idea

    Quote Originally Posted by ecmst12 View Post
    The best people to ask this question would obviously be the unemployment board, have you tried asking them?
    They are not the best people to ask. They are likely to think of all retirement accounts as the same. They may not know there is a difference between an IRA and a pension. If you report an IRA withdrawal, they are likely to deduct it from your benefits.

    Pension income is an issue because employers still fund them. With unemployment compensation, that would be a double dip for the terminated employee.

    Unemployment benefits are not welfare. You don't have to be destitute to qualify. If you are lucky enough to have savings to fall back on, you are free to use those funds while you are receiving unemployment.

    More here: [url]http://online.wsj.com/article/SB125399732556243613.html[/url]
    Last edited by RufusQuail; 11-08-2009 at 09:19 AM.
  5. #5
    ecmst12 is offline Senior Member
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    I was suggesting that OP ask BEFORE making the withdrawal, not after. And if someone doesn't know the difference between an IRA and a pension, they have no business manning the phones at the unemployment office. That's basic training.

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