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lump sump distribution/impact to unemployment-Ohio

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Junior Member
What is the name of your state (only U.S. law)? Ohio

My employment ended March 5th and I have received a lump sum distribution from my 401k and will also be taking a lump sum distribution of my vested/employer funded pension. From what I could locate on the internet, lump sum payments are not deducted from unemployment benefits. Is this still accurate information? Is there anywhere on an Ohio/Gov site that this is stated?

Thank you in advance for any assistance.


I'm a Northern Girl
Are you putting the lump sum distributions into another tax deferred, qualified fund?


Senior Member
In re reading your post, is it possible you have not yet filed your unemployment claim yet? If so, for goodness sake, file this thing immediately! They will deal with the issues concerning your IRA and your pension distribution. YOU DO NOT WAIT TILL YOU ARE LOW INCOME OR NEED THE MONEY TO FILE THE CLAIM. Even if you have the IRA money, and will be receiving the pension, etc. you still file the claim as soon as possible after you are laid off.

For the IRA, it doesn't really matter. Even if you're taking the IRA money out in a lump sum and putting it in your bank account, it's not wages paid for work performed and it's not severance. A very cursory check of the Ohio website lists IRA distributions as something that "may not" affect your eligibility. The pension distribution, on the other hand is clearly listed as something that must be reported and may indeed affect your weekly benefits. You can't lump the two together and ask a general question about both.

In any case, this is something you need to deal with through the unemployment system. Sometimes pensions affect claims. They ask about it. Report it. Any time you begin receiving some form of employer paid pension, in a lump sum or monthly distribution, you need to make the system aware so they can issue a decision whether or not it does, in fact, affect your benefits.

When you sign up for unemployment benefits, no questions are asked about your income. Unemployment is not a needs based program where you have to document that you are low income in order to receive it. They don't care whether this money will be your only source of survival or whether you're married to a trust fund baby. It only matters that you meet the eligibility requirements. When you certify each week, there is no way for you to report an income such as money from an IRA, as it is not wages paid (or to be paid)for work performed and not severance pay from your employer or some type of pension. But ask them. Don't guess.

If you're unsure about something related to your eligibility, it is not a good idea to assume anything. I suggest you go into the system and find a living human being you can speak with concerning the issue and your particular claim. Take note of the date you did this and who you spoke with if possible. They will not usually not answer general questions, like "So what if I were to .....? How would that affect my claim?" Even if you find something written dealing with the issue, your interpretation of what it says on the internet may not be the totally correct one in your particular situation, if there's a question.

And of course, I was at first assuming you'd already filed. But if you haven't, file your claim at once, now, and let them answer the questions. If you have already filed and have a claim already set up, get in touch and ask them.
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Junior Member
thank you and referred source

I opened a claim the day after i was let go; I wont receive the pension lump sum for a couple more months so if I am deemed eligible I should at least get the benefits until the pension funds are received.

I don't think I posted the link from where i saw the reference to lump sum payments; but I came across it in a PDF. No idea what the source of this PDF is; it appears it may be some sort of training aid???

Lump Sum Distributions
Effective with payments made on or after 11-01-
2009, lump sum distributions from pensions,
retirement plans, 401(k) plans, or annuities are no
longer deducted from unemployment benefits.


Senior Member
Good. Glad you have already filed the claim. Start discussing the pension issue with them now. Even though it likely will not affect your benefits, you'll have to have discussed it with them, and let them make a pension decision. They probably don't have to make one for an IRA rollover or pay out, but since certain types of pensions, received certain ways are included as disqualifying income they have to be sure your pension ISN"T one of those kind.

It won't take long, they'll just ask you for the information about the pension, and then shortly after they'll issue that decision. Where if you do not tell them at all, even though it's not going to be disqualifying, they'll have issues with it later when it cross matches with their system and your years income taxes, etc. At that point, even though you're not drawing benefits and are probably back to work or completely retired and have forgotten it, you'll get threatening letters about possible overpayments, will have to contact them, and at that point they'll have to work through your issues. An unpleasant experience you want to avoid.

And even if you only wait till you actually get the money to tell them, then at that point you'll have the claim stopped for a few weeks while they are reaching the decision. So the sooner they get it processed the better. I think you're right, and it likely will not affect, but as I said, every claim and every situation is slightly different, and you need to assume nothing, let them work it through for you.

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