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Unemployment and IRA Withdrawal

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  • 04-17-2009, 01:25 PM
    johnb123
    Unemployment and IRA Withdrawal
    A question about Calif unemployment benefits. I'm currently on unemployment. On the weekly claim form they ask "Have you earned any money weather you worked or not?". I have an IRA, would any withdrawals count as money earned? Withdrawals are taxable, but would it be considered "money earned"?
  • 04-18-2009, 07:21 PM
    kren11
    Re: Unemployment and IRA Withdrawal
    Here is what CA says you must report as earnings

    Back pay award, Jury fees,Self-employment,
    Bonuses, Paid sick leave, Severance pay,
    Commissions, Pensions, Strike benefi ts,
    Holiday pay, Piece work, Tips,
    Idle time pay Residual pay (ask for Vacation pay
    In lieu of notice form DE 4005) Witness fees,

    You must report lodging and meals, or any other payment you
    receive instead of money when you work. If you are unsure
    about how to report wages, call EDD.
  • 04-19-2009, 12:43 AM
    johnb123
    Re: Unemployment and IRA Withdrawal
    Last Friday I went to the local EDD office and asked them. I was told an IRA withdrawal would not be considered as "earned income". They compared it to taking money out of your bank account.
    I really would like to see something stating that IRA withdrawals are exempt...in writing.

    I found my answer:

    "Examples of Pensions Which Are Not Deductible
    Another area to be examined in determining a claimant's eligibility for benefits under Sections 1252 and 1279 is whether he/she has "wages" payable with respect to a week of benefits claimed.

    Individual Retirement Account (IRA). Under this plan, an individual who is not covered by a qualified retirement plan or is, but has annual wages below certain specified levels, may, by contributing to an IRA, take a deduction of up to a specified percentage of his/her earned income not to exceed a specified amount per year for money set aside for retirement. Payments received by the claimant under this plan are not deductible. (Care should be taken to ascertain whether an employer contributed to the plan for the employee since employers can elect voluntarily to contribute to these plans.)"


    http://www.edd.ca.gov/UIBDG/Total_an..._TPU_46055.htm
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