Can I take withdrawal of cash balance pension and still receive UI?

I lost my job in August and currently am receiving unemployment. Just last week I received a letter from former employer, stating it was not in their best interest financially to maintain my cash balance pension plan and strongly encouraged me to take my distribution now. The amount is about 10k dollars. I could definitely use the money. My question is, how will a distribution affect my weekly unemployment compensation. Will it only affect one week or the remainder of my time on unemployment? Thank you for your time.

1 answer  |  asked Oct 12, 2010 08:08 AM [EST]  |  applies to Ohio

Answers (1)

Bruce Elfvin
I would make sure that any distribution of your cash balance pension was to a qualified holder for an IRA, in essence a rollover. The rollover will allow you to decide when to take the money. Rolling over a pension amount into an IRA should not affect your UI benefits.

If it is a straight distribution to you there will be a penalty and withholdings. Even if you are over 58 1/2 you should control when money is disbursed.

posted by Bruce Elfvin  |  Oct 12, 2010 08:48 AM [EST]

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