Will EDD disqualify my entire claim if I take a lump sum pension hardship withdrawal?

According to EDD regulations, pension payments can reduce or eliminate your weekly UI benefit amount, but it depends on how the pension is structured. Since this is a one-time hardship withdrawal (not regular pension income), it would most likely only affect the week in which you receive it. You'll need to report it on your bi-weekly certification for the week you receive it. EDD considers this income for that specific week. The important distinction is that you're not taking regular pension payments, but rather a one-time hardship withdrawal. I strongly recommend calling EDD directly to verify this before taking the withdrawal, as different pension plans might be categorized differently.

I took a 401k hardship withdrawal last year while on UI. It only affected the week I received it - I reported it as "other income" on my certification for that week. I didn't get UI payment for JUST that week, but my claim continued normally after. Make sure you understand the tax implications though... I got hit with a big tax bill because the 401k company only withheld 20% but I ended up owing more than that since the withdrawal pushed me into a higher tax bracket plus the early withdrawal penalty. Hope you get your car fixed soon. The job hunt is hard enough without transportation issues!

When I tried calling EDD about something similar last month, I was never able to get through using the regular number. After days of frustration, I found this service called Claimyr (claimyr.com) that helped me get through to an EDD rep in about 20 minutes. They have a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km The EDD agent I spoke with told me that one-time withdrawals generally only affect the week they're received in, but she emphasized that I needed to be extremely clear on my certification that it was a one-time hardship withdrawal and not regular pension income. The key is how you report it.

I think everyone here is missing something important - the EDD rules about pensions depend on whether the pension is from an employer that's part of your BASE PERIOD (the 18 months they used to calculate your benefit amount). If the pension is from an employer in your base period, it could affect your entire claim. If it's from an older job that's not in your base period, then it usually only affects the week you report it. Also, important distinction between 401k hardship withdrawals (which are generally treated as one-time income) and actual pension disbursements (which can be more complicated). You NEED to clarify which type of retirement account this is before proceeding.

dude just dont report it lol. how would edd even know if you took money out of your 401k? its not like regular income that gets reported to the irs until tax time next year.

i had a similar situation last summer when my roof started leaking and i needed $$$ fast. took out 8500 from my retirement. EDD did stop my payment for that ONE week but then everything went back to normal after. make sure u mark it as a ONE TIME withdrawal on ur certification and maybe even call and explain. good luck with ur car!!!! :

After reading all the responses, I think you have two options: 1. Try contacting EDD directly for a definitive answer before taking any action. Given that this pension is from an employer in your base period, you need official guidance. 2. Consider alternative solutions for your car repair needs: - Credit union hardship loans often have better terms than retirement withdrawals - Some nonprofit organizations offer emergency grants/loans for transportation needs specifically for job seekers - See if your local workforce development center has transportation assistance programs The tax implications of early retirement withdrawals can be severe (10% federal penalty + ordinary income tax + state penalties). Plus, you're depleting your retirement savings during a vulnerable time. If you do proceed with the withdrawal, be 100% transparent with EDD and keep documentation of everything.

THE EDD SYSTEM IS DESIGNED TO CONFUSE YOU AND TRAP YOU!!! I had a similar situation and ended up with a "false statement penalty" that added 6 PENALTY WEEKS to my claim where I didn't get paid at all!! They said I should have known that my pension withdrawal counted as income even though the EDD website is completely unclear about this!! THIS SYSTEM IS RIGGED AGAINST WORKERS!!

After reading all this, I think your best bet really is to talk directly with an EDD representative before taking any action. Since this is from an employer in your base period, it's complicated and getting the wrong advice could create a huge mess. If you're still having trouble getting through on the phone, I seriously recommend trying Claimyr. It saved me days of frustration, and for something this important, it's worth getting a definitive answer from EDD directly.

I went through something similar last year when I needed emergency funds while on UI. Here's what I learned: since your pension is from your most recent employer (in your base period), EDD will likely treat this differently than a regular 401k withdrawal from an old job. The key distinction is that EDD considers pensions from base period employers as "deductible income" which can reduce your weekly benefit amount going forward - not just for one week. This is different from other types of retirement withdrawals. Before you do anything, you absolutely need to speak with an EDD rep. I know the phone system is frustrating, but this is too important to guess on. When you do talk to them, be very specific that this is a one-time hardship withdrawal from a pension account (not regular pension payments) and ask specifically how it will affect your ongoing claim. Also consider asking local churches, community centers, or even posting on neighborhood apps like Nextdoor - sometimes people know of emergency car repair assistance programs that aren't widely advertised. $3100 is a lot to lose from retirement savings plus potential UI complications. Document everything if you do proceed - keep records of your conversation with EDD, the hardship documentation, and exactly how you report it on your certification.

I work at a local credit union and wanted to mention a few alternative options you might not have considered: 1. Some credit unions offer "signature loans" or "emergency loans" with more flexible requirements than traditional auto loans - especially if you can show proof of regular UI benefits. These might be different from what you already tried. 2. Look into "emergency assistance" programs through 211 (dial 2-1-1). They sometimes have funds specifically for transportation repairs for job seekers that aren't widely advertised. 3. Some auto repair shops offer payment plans or might accept partial payment upfront with a payment agreement for the rest. 4. If you have any friends/family who could co-sign, that might open up more lending options. I completely understand wanting to tap your retirement funds - it feels like the fastest solution when you're desperate. But given what others have shared about the EDD complications with base period employers, it might be worth exhausting these other options first. The tax penalties alone on a $15k early withdrawal could be $3-4k (10% federal penalty + income tax + state penalties), which is more than your car repair! Hope you find a solution that works. Transportation issues make job hunting so much harder.

I've been following this thread and wanted to share some additional resources that might help. Since you mentioned you're in California, check if your county has a "CalWORKs Emergency Aid" program - even if you don't qualify for regular CalWORKs, some counties have emergency transportation assistance for job seekers that's separate from their main programs. Also, if you're a member of any professional associations related to your field, some offer emergency assistance grants to members who are unemployed. It's worth checking their websites or calling directly. Another option to consider: some community colleges have emergency grant programs for students, but they also sometimes have community assistance programs that help with transportation issues for job seekers (not just students). Might be worth calling your local community college's financial aid office to ask. The fact that so many people are giving conflicting advice about the EDD implications really shows why you need to get official guidance directly from them. Don't let anyone pressure you into not reporting income - that's a risk not worth taking. Good luck with whatever path you choose!

I'm glad to see you're exploring all these alternative options before making a decision about your retirement funds! As someone who's been through unemployment myself, I know how overwhelming it can feel when you're facing multiple financial pressures at once. One additional resource I'd suggest checking is your local United Way chapter - they often maintain databases of emergency assistance programs that even 2-1-1 might not have complete information about. Some have specific "Wheels to Work" or transportation emergency funds. Also, don't overlook asking the auto shop if they have any partnerships with financing companies. Some larger chain shops (like Firestone, Midas, etc.) offer 6-12 month no-interest financing for major repairs, which might buy you time to get back on your feet without touching retirement savings or risking your UI benefits. The fact that you're taking time to research all options shows you're making smart decisions under pressure. Whatever you decide, make sure you get that official guidance from EDD in writing (email follow-up after phone call) if you do proceed with any retirement withdrawal. Documentation is your friend with EDD! Wishing you the best with your job search and hoping you find a solution that keeps both your car running and your benefits intact.

I've been reading through all these responses and wanted to add one more perspective as someone who works in financial services. The tax implications everyone mentioned are absolutely critical to consider - that $15k withdrawal could easily cost you $4-5k in taxes and penalties, making your actual net around $10-11k for a $3,100 repair. But here's something I haven't seen mentioned yet: if you do decide to proceed with the withdrawal, make sure you understand the difference between a "hardship withdrawal" and a "hardship distribution." Some plans allow true hardship withdrawals (no penalties under certain circumstances) while others only offer hardship distributions (still subject to penalties). The terminology matters for both tax and EDD reporting purposes. Also, since this is from Meridian Manufacturing and they're in your base period, you might want to call them directly to ask about their pension plan rules. Sometimes employers have emergency loan provisions from 401k plans that are better than withdrawals - you'd borrow from yourself and pay it back over time, avoiding the tax hit entirely. Before you exhaust your retirement savings, definitely try all the community resources others suggested. And if you do need to contact EDD, be very specific about whether this is a 401k, pension, or other retirement account type - they have different rules for each. Best of luck with your situation - car troubles while job hunting is incredibly stressful.

I wanted to jump in here as someone who recently navigated a similar situation with EDD and retirement funds. Reading through all these responses, I think the community has given you excellent advice - especially about exploring all alternatives before touching your retirement savings. One thing I'd add is that when you do call EDD (and you absolutely should before making any decisions), ask to speak with a Tier 2 representative if the first person can't give you a definitive answer. Sometimes the front-line reps aren't fully familiar with the nuances of pension withdrawals from base period employers. A Tier 2 rep will have more expertise on complex situations like yours. Also, I noticed you mentioned Meridian Manufacturing - if they have a decent HR department, they might also be able to connect you with their Employee Assistance Program (EAP). Many companies offer EAP services that include financial counseling and sometimes even emergency financial assistance that former employees can access for a certain period after layoffs. The loan option from your 401k that Emily mentioned is definitely worth exploring first. I borrowed from mine a few years ago and it was much better than a withdrawal - you're essentially paying yourself back with interest instead of losing money to taxes and penalties. Keep us updated on what you find out! This thread has been incredibly informative and I'm sure your experience will help others in similar situations.

Reading through this entire thread has been incredibly educational! As someone who's currently navigating unemployment myself, I had no idea there were so many factors to consider with retirement withdrawals while on UI benefits. The distinction about base period employers is something I never would have known - that's a crucial detail that could make or break someone's entire claim. It's scary how easy it would be to make an expensive mistake without understanding these nuances. I'm really impressed by all the alternative resources people have shared here. The 2-1-1 hotline, United Way, CalWORKs Emergency Aid, professional association grants, and especially the 401k loan option instead of withdrawal - these are all things that should be more widely known for people in financial emergencies. @Sofía Rodríguez - I hope the 401k loan option works out for you! That seems like it could solve your problem without any of the tax penalties or EDD complications. Please keep us posted on what you find out from Meridian's HR department. Your situation and everyone's responses here could really help other community members facing similar challenges. Thanks to everyone who contributed their knowledge and experiences. This is exactly the kind of community support that makes such a difference when you're dealing with the stress of unemployment and financial emergencies.

This thread has been incredibly informative! As someone who's also dealing with unemployment and unexpected expenses, I had no idea about the base period employer complications or the difference between hardship withdrawals and distributions. @Sofía Rodríguez - I really hope the 401k loan option through Meridian works out for you! That seems like the ideal solution to avoid both the tax penalties and potential EDD issues. The math that Emily broke down is eye-opening - losing $4-5k in taxes/penalties for a $3,100 repair really puts it in perspective. One thing I wanted to add that I don't think anyone mentioned - if you do end up needing to go the withdrawal route and talk to EDD, you might want to also ask them about the appeals process upfront. Given some of the horror stories shared here about penalty weeks and claim cancellations, it would be good to know your rights and options if something goes wrong, even if you report everything correctly. Also, for anyone else reading this thread in the future - document EVERYTHING. Take screenshots of EDD website pages, save emails, write down dates/times/names when you call. The system seems complicated enough that having a paper trail could be crucial if disputes arise later. Thanks to everyone who shared their experiences and resources. This community is amazing for looking out for each other during these tough times!