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Asked 9/27/2011
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Unemployment I live,in,Indiana,I lost my job,and IM getting,unemployment,I take out my Fidelity 401k,but I dont tell, to unemployment offie,I got my Fidelity 401k,wich is no match,with my,company,it was my money,I put down every month,15%,from my pay check,but in state of Indiana,when you file every week,3 jobs in computer,they ask you,did you resive,401k,or pension,or any money,so now I dont know what to do,I still getting my unemployment,and I dont know,they know about,my fidelity money or not,wich i got 4 weeks later,when I file for unemployment,and I dont know what will hapend,to me,I will get penaltes,or I have to pay money back,or prison time,can you tell me please what will hapend to me, or what Ido have to do,thank you. |
Answer 1/3 - Submitted 9/27/2011
The 401k money you said is completely yours. It's like taking money out of a savings account because the unemployment money isn't enough to live on. Everyone's having to do that.
You file a Continued Claim Form every two weeks putting down only money you made as an employee. The Continued Claim Form does not ask for money you are taking out of savings.
If you had some income during the 2 weeks, you will get a form back stating that you are not receiving a pension, and telling you to immediately contact them if anything on the form is not true.
That form will come even to people who already told them they are receiving a pension. It's just a standard form.
Continue to file Continued Claim Forms, giving only money earned as an employee during those 2 weeks. Do not report money taken out of a 401k to which you were the only contributor. That's not money earned by working as an employee during those 2 weeks.
Answer 2/3 - Submitted 9/28/2011
Answer 3/3 - Submitted 9/28/2011
It's very possible that you've been overpaid. According to their guidelines, you'll have to return some of this money, Unfortunately, 401(k) withdrawals are considered income.
This can disqualify or delay your regular unemployment payments. If part of your account is still intact, stop taking more 401(k) disbursements if you want unemployment. In the mean time, seek out other means of income, even if it's just for a few hours a week.
Unemployment pay is often extremely low. If you can find odd jobs or sell your own services, then you're better off. You'll be out working again, and with more income than unemployment can provide. This may look good to future employers too. Otherwise, stop all other income streams and move forward strictly with the unemployment checks to support yourself while you look for more work.
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