How Does A 401k Cash Out Effect My Unemployment In Wisconsin?


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Maggie Dee answered
First, just a reminder that if you are under age 59-1/2 and you cash out your 401K you will not only owe regular income tax on it, but a 10% penalty as well. You can do a rollover without any tax consequences. But if you take the money in your hand (and keep it out of another qualified plan such as an IRA for 60 days), the taxes and penalty apply.

On to your question. Unemployment Compensation is for you having lost your job. It does not take over passive income into account. Your UC will be unaffected.

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