Results 1 to 3 of 3
  1. #1
    Join Date
    Mar 2015
    Posts
    1

    Default Will Lump Sum Severance Affect Unemployment Eligibility

    My question involves unemployment benefits for the state of: OHIO

    My employment was terminated in January. My company has an over funded pension plan so they are paying severance using funds from the pension program. The lump-sum I received is based on weeks worked and was rolled directly into my 401K account. Since this is a pre-tax distribution,they will not be included in a a W-2 nor will taxes or social security be deducted until I withdraw money from the 401K.

    Will these lump-sum funds impact my ability to collect unemployment. I had to sign a release of liability to get the funds.

  2. #2
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,521

    Default Re: Will Lump Sum Severance Affect Unemployment Eligibility

    No, 401(k) funds and other tax-deferred funds do not affect unemployment. If you were taking a distribution they might, but since you are not they will have no effect. In fact, since you cannot access them I'm not even certain you have to report them.

  3. #3
    Join Date
    Jan 2015
    Posts
    1,142

    Default Re: Will Lump Sum Severance Affect Unemployment Eligibility

    Usually, the weekly benefit certification form will have a question related to severance, pension plans, retirement, etc. Since they're calling it severance, I'd report it and ask the Ohio unemployment system people exactly what to do. I'd talk to a living human being in the system, and discuss it with them. They'll most likely tell you it's not reportable and won't be anything that will affect your weekly benefits, but I'd ask, just to be on the safe side.

    1. Sponsored Links
       

Similar Threads

  1. Layoffs and Reductions in Force: Severance Agreement Suggests a Lump Sum, but Is Being Paid in Installments
    By Anonymous2014 in forum Employment and Labor
    Replies: 4
    Last Post: 04-06-2014, 12:41 AM
  2. Disability Benefits: How Do Lump Sump Social Security Payments Affect Means-Tested Benefit Eligibility
    By jms15 in forum Social Security Law
    Replies: 6
    Last Post: 07-27-2013, 10:02 PM
  3. Social Security Issues: Will Getting a Roommate Affect SSI Eligibility
    By zappyisfun88 in forum Social Security Law
    Replies: 4
    Last Post: 12-30-2012, 08:34 PM
  4. Denial & Appeals: Appealing a Disqualification for Benefits Due to Receipt of Lump Sum Severance
    By mominneedofhelpplease in forum Employment and Labor
    Replies: 11
    Last Post: 07-19-2012, 09:15 AM
  5. Unemployment Benefits: Eligibility After Severance Pay
    By zeewiz in forum Employment and Labor
    Replies: 3
    Last Post: 11-06-2008, 08:46 AM
 
 
Sponsored Links

Legal Help, Information and Resources