Page 2 of 2 FirstFirst 1 2
Results 11 to 15 of 15
  1. #11
    Join Date
    Jul 2020
    Posts
    8

    Default Re: Do IRA Withdrawals Affect Unemployment (Pua) in Wisconsin

    Because of the 72t I do receive a 1099R at tax time. State might link it up, but as you say impractical. They could also look back at prior tax years and see the same info. That might happen, but they already had my tax form at application time showing a substantial withdrawal.

    As further evidence to me that IRAs (and evening 401Ks) are a non-issue, the CARES Act lets people take money out of their IRAs or 401Ks without penalty and, to the extent the money is returned within three years, without income tax. Essentially a rollover with a three year window. So how in the heck could unemployment track and judge these withdrawals since they may not be taxable, depending on repayment, but that determination won’t be known at any specific time and certainly not in the UE timeframe? That throws a monkey wrench into the whole system.

  2. #12
    Join Date
    Mar 2012
    Posts
    1,358

    Default Re: Do IRA Withdrawals Affect Unemployment (Pua) in Wisconsin

    You're confusing a tax liability with an offset to UI benefits.

    I think that 1099R's issued for 401K withdrawals might look different from 1099R's from IRAs. However, I don't have the paperwork to prove it because I have never taken a withdrawal directly from a 401K.

    You can get rental income from the spare room in your house, dividends, and interest. All of those are taxable, but they do not offset your UI benefits.

  3. #13
    Join Date
    Jul 2020
    Posts
    8

    Default Re: Do IRA Withdrawals Affect Unemployment (Pua) in Wisconsin

    Thanks, I do get that the IRA is considered taxable income and doesn't impact IRA benefits as a "pension." I guess I was just adding that the CARES Act provisions that allow even 401k withdrawals due to COVID might make everything hard to adjudicate for other cases involving 401k since they can be rolled back over a lengthy period.

    As for the reporting of IRA w/d, I'm confused by one phone rep who said "if it's taxable, report it." Were they just uninformed? I get that, for them, having people itemize everything is safer as they will catch what they need and let the rest go. While I'm not wanting to go down the rabbit hole needlessly, stuff like that leaves me a nagging sliver of doubt. Penalties are stiff, etc.

    The 1099R has a box next to the distribution code that can be checked for "IRA/SEP/SIMPLE." There's also a box for "Total distribution." So they can easily decipher the kind of account.

  4. #14
    Join Date
    Mar 2012
    Posts
    1,358

    Default Re: Do IRA Withdrawals Affect Unemployment (Pua) in Wisconsin

    Quote Quoting wiscon
    View Post
    I'm confused by one phone rep who said "if it's taxable, report it."
    You can always report income. It's always the safe thing to do, BUT when you report something that doesn't need to be reported and your UI payments stop until a decision is made, you're going to be mad that your financial life is destroyed when you had no business reporting it in the first place.

    IRA withdrawals do NOT have to be reported. IRA payments are NOT on the list. Stop worrying about it.

    If you get an adverse decision, you can deal with it when/if it happens, but don't mess up your life now. It might take months to get your UI back.

  5. #15
    Join Date
    Jul 2020
    Posts
    8

    Default Re: Do IRA Withdrawals Affect Unemployment (Pua) in Wisconsin

    Thanks...I needed that. I'm done dithering. I very much appreciate the refocus.

    Your help has been immense! Thank you!

    1. Sponsored Links
       

Page 2 of 2 FirstFirst 1 2

Similar Threads

  1. Unemployment Benefits: Does a Withdrawal from an IRA Affect Unemployment Benefits
    By pinogrigio in forum Employment and Labor
    Replies: 19
    Last Post: 04-04-2018, 06:43 AM
  2. Unemployment Benefits: Can Withdrawals from an IRA Disqualify You for Unemployment Benefits
    By cswanson69 in forum Employment and Labor
    Replies: 11
    Last Post: 01-14-2016, 07:02 PM
  3. Unemployment Benefits: Will Deposits to or Withdrawals from a 401K Affect Unemployment Eligibility
    By personal rep in forum Employment and Labor
    Replies: 8
    Last Post: 08-31-2015, 11:20 AM
 
 
Sponsored Links

Legal Help, Information and Resources