401k and unemployment

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401k and unemployment

If you take your 401k out in a lump sum will it affect your unemployment
compensation. The company is the only one that put money in it and I can
only take it out in a lump sum

Asked on April 30, 2018 under Employment Labor Law, Pennsylvania

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

No, your 401k savings is not salary continuation: it is your own savings, like money in your bank account or investment/brokerage account you have. Taking your own money out of savings should not affect unemployment eligibiity; taking money from your 401k is not the equivalent of receiving severance (which does affect unemployment benefits).


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