Yes you would have to report it.

I disagree, you do not need to report it. Unemployment is not means based (meaning the amount you are paid is not determined by how much/little money you have in a savings account or whatever.) It's based on your wages earned previously. If you got severance pay or something like that they would need to know, but your personal 401K or any other money you have from other sources in none of their concern.

I have been exploring same thing. Even though I was told by an admin at my EDD office + a rep when I called and asked in general I am still all queasy =/ But was told this is unearned income vs earned income and not something to report.

I guess update here what you did if you don't mind sharing what you did.

Yes, it must be reported when asked about changes in pension payments etc. Your unemployment benefits will be reduced by the gross withdrawal (not net amount received). So don't cash out 401(k) accounts until you've exhausted unemployment benefits. There is a possibility if you don't report it properly that your enemployment benefits could be prematurely ended as punishment. I've heard of this happening when people don't declare money they've received from outside sources (like cash under the table).

You do report it, but to the IRS, not the unemployment commission. When you file your taxes you have to report your unemployment and your 401k because you can possibly be penalized for early withdrawal. You can possiblity owe taxes on your unemployment if you have other income. The cash out of your 401k is considered income.

Yes you report on your income tax when you file. You also report your unemployment because you can possible owe taxes if you have other income. Since you cashed out your 401k it is considered inocme.

Yes you do have to report it to both the unemployment commission and to the IRS.

It's not new income, it's old income - you already earned it. So there's no need to report it as income to your unemployment insurance folks.

Do you have to report money taken from your savings account? That's really all a 401(k) cashout is.

You will, however, have to report the money as new income to the IRS because all they care about is whether or not they've been paid their share - and since 401(k) money is tax-deferred, if you're under age 59 1/2 when you cash out, you'll incur significant penalties on top of the regular taxes.

Thanks. I have already reported to IRS in that I had it deducted. I walked into an EDD office as well as called and was given the no you don't have to report it. I do not know why I did not feel confident but thought I ask again. I was given the the same answer as last response several times about it being essentially a taxable savings account.
I appreciate the help ..

I was collecting unemployment and I exhausted my benefit..the moth I stopped collecting, I cashed in my 401 k and am under 59 years of age. Do to extension my unemployment started again in 1/1/10..Do i repot to esc on my weekly filing. I cashed in when I did not collect

The cash out of 401k was while i was notcollecting but am collecting prior and now..how do i report the gap

Yes u have to report it..