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about unemployment benifits and IRA's

My husband wants to cash in his retirement but is on unemployment. Will doing this affect his benefits?

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Anonymous

Asked by Anonymous at 10:59 AM on Apr. 16, 2009 in Money & Work

Answers (4)
  • It shouldn't because he isn't working. Call your state's employment security commission. Im sure as long as he is unemployed he can still get his benefits. It doesn't matter about his other income
    diamondmamma

    Answer by diamondmamma at 11:09 AM on Apr. 16, 2009

  • Thanks, we just want to be sure we area strapped for cash. Taking out his retirement would be great and keep us off other forms of asst.
    Anonymous

    Answer by Anonymous at 11:57 AM on Apr. 16, 2009

  • Actually I think it does effect unemployment. Technically that money would be considered "wages" (I think), so unemployment would take that into consideration. He would also have to pay taxes on it since those were pre-tax dollars.
    ap9902

    Answer by ap9902 at 11:58 AM on Apr. 16, 2009

  • That money doesn't become income until you use it, so yes, it could affect your unemployment. Your retirement fund (usually) is set up pre-tax, which means you haven't paid taxes on it. You will get hit with the taxes AND penalties, so basically you can kiss half of it good bye. I would only use it as a complete last resort. If you can qualify for other forms of assistance, then do it and hope that a job comes along quickly. The absolute only reason that I would cash in a retirement fund was if I was about to lose my home.
    slw123

    Answer by slw123 at 12:43 PM on Apr. 16, 2009

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