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Old 12-13-2012, 11:19 PM
 
3 posts, read 15,472 times
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I took a distribution from my IRA account back in August. It never occurred to me that it could possibly effect my UI benefits. When they ask to report any wages or earned income, honestly I only think of those that come from a job.

I've read conflicting answers and obviously it depends on which state you are in, but being in CA is it non-deductible from your UI benefits. Reading about it on EDD website is a bit confusing for me. They do have a section on retirement and pensions. Not sure how it gets calculated if they deduct from your weekly benefit. I took 6k out and only get 395 a week from UI. If it turns out to be something that was supposed to be deductible I'm sure I'll be owing them money or some how penalized.

I know their was a thread earlier this year on this same subject from someone else in CA. California unemployment insurance and IRA withdrawl
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Old 12-13-2012, 11:37 PM
 
Location: Wisconsin
21,535 posts, read 43,972,276 times
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If you were the sole contributor to this IRA, you do not need to report it:

This from the CA website:
Quote:
Individual Retirement Account (IRA). Under this plan, an individual who is not covered by a qualified retirement plan or is, but has annual wages below certain specified levels, may, by contributing to an IRA, take a deduction of up to a specified percentage of his/her earned income not to exceed a specified amount per year for money set aside for retirement. Payments received by the claimant under this plan are not deductible. (Care should be taken to ascertain whether an employer contributed to the plan for the employee since employers can elect voluntarily to contribute to these plans.)

Total and Partial Unemployment TPU 460.55 - Pension or Retirement Pay
Generally, in most states, if your employer was a contributor - usually through an employer sponsored 401k - that withdrawal would be reportable proportional to the employer contribution. If this is a personal IRA, you do not need to report it.
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Old 12-14-2012, 12:31 AM
 
Location: California
4,402 posts, read 11,602,964 times
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If you took it as a lump sum, even if it does count it will only court during the week in which you took it. I received a settlement from a wage related court case while on unemployment. It was significant...in the same general amount as yours. EDD said it counted. But only in the week in which I received the settlement. And only because it was payment of wages.
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Old 12-14-2012, 08:23 AM
 
58 posts, read 138,000 times
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Another "income" question -

I am having my termination for exceeding medical leave allotment (went on WC due to OJI) adjudicated by Florida DEO. I was asked to provide information about my WC benefits. I know that these do not qualify as income for wage determination, but where do they fit in here?

I appear to be back on Tier 1 Federal EUC, but payment is being held up to adjudicate this termination and also to remove this WC "flag". They are apparently not satisfied with the WC form that shows me released from all restrictions and are asking for a doctor's release.

Will the amount of WC I received (but no longer do) affect my Federal EUC benefits?
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Old 12-14-2012, 12:31 PM
 
Location: Wisconsin
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No. You weren't collecting WC at the same time as EUC. You are now dealing with the "able and available" issue. Just gotta wait.
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Old 12-14-2012, 02:07 PM
 
58 posts, read 138,000 times
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Waiting all day to hear back as I responded early this morning. The frustrating part is that I could have been working on this since Monday, when the first rep I spoke to led me to believe all that was needed to start payment was to get my medical status verified.

I reached someone higher up and explained this whole nightmare to him and he had an adjudicator contact me - but also told me that my medical flag had been removed on Tuesday, but he raised the "available and able" flag about my termination not being adjudicated, and the adjudicator raised my medical issue in that she apparently was not satisfied with the WC form. I am afraid this is a case of the original rep being unaware or incompetent and not seeing these other issues.

Does anyone have any reliable info on EUC extension? I don't here the politicians talking about it much, although Democrats seem to want it done no matter what else does or doesn't get done.
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Old 12-14-2012, 02:51 PM
 
Location: Wisconsin
21,535 posts, read 43,972,276 times
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Quote:
Originally Posted by martyr2 View Post
Does anyone have any reliable info on EUC extension? I don't here the politicians talking about it much, although Democrats seem to want it done no matter what else does or doesn't get done.
Congress often surprises - no way to predict, really. We are discussing that, here:

Will EUC be extended in 2013?
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Old 12-14-2012, 03:01 PM
 
3 posts, read 15,472 times
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Quote:
Originally Posted by thebunny View Post
If you took it as a lump sum, even if it does count it will only court during the week in which you took it. I received a settlement from a wage related court case while on unemployment. It was significant...in the same general amount as yours. EDD said it counted. But only in the week in which I received the settlement. And only because it was payment of wages.
It was a partial distribution I made from an IRA account that I rolled over from a previous 401K account. It didn't have anything to do with wage related disputes. Guess now my issue is since it happened back in August how do I go about reporting to CA EDD. If I knew I was supposed to report it I would've done that in the week of August that it happened. I read on another site that EDD took a month to process his reporting before his UI payments were resumed. Someone else also said they didn't think distributions from an IRA were treated as wages but pension distributions were.
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Old 12-14-2012, 04:18 PM
 
Location: Grass Valley,CA.
1,137 posts, read 2,173,725 times
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Not a problem in CA. I took some money out also. The EDD only counts INCOME from WORK, not savings.
You may resume your life now.
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Old 12-14-2012, 04:21 PM
 
Location: Wisconsin
21,535 posts, read 43,972,276 times
Reputation: 15135
Quote:
Originally Posted by Anonymous_One View Post
It was a partial distribution I made from an IRA account that I rolled over from a previous 401K account. Guess now my issue is since it happened back in August how do I go about reporting to CA EDD. Someone else also said they didn't think distributions from an IRA were treated as wages but pension distributions were.
Don't report it. The money is now in a personal IRA. It is highly unlikely, bordering on never, that CA will be interested in distributions from a personal rollover IRA, per this:

Quote:
Examples of Pensions Which Are Not Deductible. Individual Retirement Account (IRA). Under this plan, an individual who is not covered by a qualified retirement plan or is, but has annual wages below certain specified levels, may, by contributing to an IRA, take a deduction of up to a specified percentage of his/her earned income not to exceed a specified amount per year for money set aside for retirement. Payments received by the claimant under this plan are not deductible. (Care should be taken to ascertain whether an employer contributed to the plan for the employee since employers can elect voluntarily to contribute to these plans.)

Total and Partial Unemployment TPU 460.55 - Pension or Retirement Pay
Your employer directly contributed to a 401k. It did not elect voluntarily to contribute to a personal IRA. Further, CA would need to be investigating any IRA withdrawal by any claimant for possible employer contributions to a 401k that had since been rolled over to an IRA.

Not happening.
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