Would cashing out my 401k affect my unemployment benefits?

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Would cashing out my 401k affect my unemployment benefits?

Asked on December 11, 2012 under Employment Labor Law, Rhode Island

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

No, it should not. Unemployment is affected by current income from work, whether self-employed or employed by others. It is not affected by other sources of income or funds. Your 401k is savings, not income, at this point; the contributions you had made, or any employer matches or contributions, was compensation for work previously done (e.g. you earned it already); and any interest you received is just that--interest, not salary or wages.


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