06 May Will this account stop me from getting unemployment?
Q. Due to a workforce reduction, I was terminated by my former employer. Shortly after, I took my retirement account, fully funded by my former employer, in one lump sum and rolled it over to my IRA. Does this impact my eligibility to collect unemployment benefits?
— Not working
A. We’re sorry to hear about your job.
To qualify for New Jersey Unemployment Benefits you must have lost your job through no fault of your own, said Bernie Kiely, a certified financial planner and certified public accountant with Kiely Capital Management in Morristown.
You must be able to work, are actively seeking work, are available for work and you cannot refuse an offer of suitable work, he said.
Unemployment compensation is not means tested, which means eligibility does not require the applicant to be poor. So, no matter how much money you have in the bank, you can still receive benefits, Kiely said.
“The fact that you rolled your company retirement benefits into an IRA account should have no bearing on your eligibility to receive benefits,” he said. “If you left your job and begin receiving lifetime pension or 401(k) payments, you won’t be eligible for unemployment because you would be considered retired and no longer in the workforce.”
Good luck to you.
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This story was originally published on May 6, 2019.
NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.