NJ Unemployment benefits pended, is this due to my 401K withdrawal?
I was recently laid off from my job 3 months ago (employed with same company for 10 years) and have been receiving unemployment benefits in NJ at the maximum amt. In Nov 2016 the benefits run out and I have requested to a withdrawal for funds in my 401K account. I contributed 50% and company matched 50%. Now NJ UI Dept pended my UI benefits and said I must attend a "non-monetary" interview via telephone with a Claims Examiner. Will I lose my NJ UI benefits?
1 answer | asked Aug 30, 2016 4:21 PM [EST] | applies to New Jersey
Answers (1)
Many states tightened the belt on unemployment benefits after the recession in the late 2000s. Under many state unemployment laws if you receive any benefits from a former employer, like severance or a 401k distribution, your unemployment benefits stop because you have an income source available. Unfortunately most people discover this after they take money out of a 401k or accept a severance offer. I do not know whether this is the case in NJ but you should talk to an attorney ASAP.
posted by Adam Kielich | Dec 23, 2017 6:18 PM [EST]
posted by Adam Kielich | Dec 23, 2017 6:18 PM [EST]
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