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Old 09-23-2014, 06:06 AM
 
29,866 posts, read 34,936,573 times
Reputation: 11788

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Quote:
Originally Posted by MidnightStar View Post
My husband lost his job in August because the place where he worked closed. He signed up for Unemployment Benefits a few days later. He already knew that the first week was a waiting period. The second week he started receiving his Benefits. He had a 401k and after he got laid off he had to withdraw the full amount of money. The Financial Adviser where he had his 401k said he should have a check mailed to him for the full amount so he did. He had to fax a copy of the check to the Unemployment Office. He didn't know that he wasn't supposed to spend any of the money so we bought a lot of things we needed and some things that we wanted. Now his Unemployment Benefits are on hold and he won't start receiving them again until a dollar-for-dollar deduction has been deducted from his weekly Benefit payment.

Without his weekly Benefits we're going to have a hard time making ends meet.

My question is why should they care what he spent the money on and why he wasn't supposed to spend it.

Any reply would be appreciated.

Thank you.
The person referred to as the financial advisor worked for the company holding the 401 and as others mentioned the account was probably being closed. Was there a fiduciary responsibility or just more of a clerical instruction of what to do? Were they even in position to do a direct rollover to a more full service company. What was the nature of the investments being sold? Lot of questions and what was the exact wording of the suggestions given. Unfortunately the decision to sell was the OP's and not the fault of the investment company so I doubt there is fault there.
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Old 09-23-2014, 10:26 AM
 
Location: Central Massachusetts
4,800 posts, read 4,862,845 times
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Quote:
Originally Posted by MidnightStar View Post
Both my husband and myself get SS and if that was the only income we had he would get Unemployment Benefits. He gets another pension from the state of Indiana. That pension isn't what has stopped him from drawing his Benefits......just the 401 k.

He's 73 years old has heart and blood pressure problems. He had a heart attack in March of 2007, had to have 4 stints put in, was off work for several weeks and after that he started working only 4 hours a day. When he went to the Unemployment Office to file his initial claim he didn't mention that. Probably wouldn't have made any difference anyway.

Sometimes I wonder if the people at the main Unemployment Office in Indianapolis aren't purposely giving him a hard time because of his age.

I was going to reply to your original post but this one gives us a bit more info so I will use this. First off your husbands age keeps you from having to pay any penalties so that is a good thing. It was not good that you took the entire amount and spent it but you would be needing to start to draw down on it anyway so.... no foul there. You should be able to be collecting SS at this point and if there are any other savings you can use that. Unfortunatly that 401k is no longer an issue so you will need to proceed with what you have in income now.

Your ages should put you in a category in SS that any income is exempt so if you need to work to make ends meet you can do so without penalty. Only penalty will be in gross income for Federal taxes and state if your state taxes earned income. If you have low expenses you should be okay. Prayers to you and your husband.

Last edited by oldsoldier1976; 09-23-2014 at 10:27 AM.. Reason: One more thought
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Old 09-23-2014, 01:54 PM
 
Location: Wisconsin
21,552 posts, read 44,124,869 times
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Ya'll are talking to yourselves. OP has not been back to the board since December 18, 2011.
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Old 09-23-2014, 04:44 PM
 
29,866 posts, read 34,936,573 times
Reputation: 11788
Quote:
Originally Posted by Ariadne22 View Post
Ya'll are talking to yourselves. OP has not been back to the board since December 18, 2011.
Sorta funny on my part and others
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