401k withdrawal impact on weekly ESD benefits - one week or ongoing deduction?

Ah I had almost the same thing happen to me! From my experience, ESD only counts retirement withdrawals against the week you report them. It doesn't carry over to future weeks. Next week when you file, if you don't have any other income to report, you should get your regular benefit amount again.

The previous commenter is correct. ESD treats 401k withdrawals as income for the week you receive the money, not as an ongoing deduction. It's considered a lump sum payment that affects only the specific week it was received. For clarity, here's how it works: 1. The week you report the 401k withdrawal, your benefits are reduced based on the 75% rule (they deduct 75% of your reported income from your weekly benefit) 2. If your 401k withdrawal exceeds your weekly benefit amount by enough, you won't receive a payment for that week 3. The following week, assuming you have no new income to report, your benefits return to normal Just make sure you're reporting the withdrawal in the correct week - the week you actually received the funds, not when you requested them.

i think it depends on how u reported it on ur claim. if u put it as a one-time payment it should only affect that week. but if u accidentally marked it as ongoing income they might keep deducting it

I had to deal with this exact situation in January. Let me explain what happened to me: 1) I withdrew $3,450 from my 401k (desperate times) 2) Reported it on my weekly claim 3) Didn't get paid for THAT week only 4) Next week my benefits resumed normally BUT - and this is important - you need to be aware that 401k withdrawals can have tax implications for unemployment. Since it counts as income, if your withdrawal was large enough, it could potentially push your yearly income high enough to affect your benefit eligibility going forward. Also, ESD sometimes flags accounts that have retirement withdrawals for additional review, so don't be surprised if you get a questionnaire about it.

Has anyone been able to get through to ESD lately?? I've been trying to call for DAYS about a different issue and it's impossible. Always get the message that call volume is too high and to try again later. So frustrating!

Just to clarify based on some misinformation in this thread: 401k withdrawals are typically only counted for the week they're received. However, if you're receiving systematic/periodic payments from your retirement account (like monthly distributions), those CAN affect multiple weeks. Based on your description, you took a one-time withdrawal, which should only affect the one week. If you're concerned, check your ESD account online - look at 'Payment History' and it should show if future payments are being held or if just the one week was affected. Also, be aware that taking 401k withdrawals while on unemployment can sometimes trigger additional verification requirements, so keep an eye on your ESD messages in case they request any documentation about the withdrawal.

UPDATE: I just checked my ESD account and filed this week's claim (with no additional income to report) and it shows as 'processing' with the full benefit amount! Looks like it's just a one-week impact after all. Thanks everyone for your help and clearing this up for me. The stress was really getting to me!