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.