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Hi there - I work with a legal aid organization that helps with unemployment issues. Let me clarify this situation: Under Washington state unemployment insurance law, a ONE-TIME withdrawal from your OWN 401k/IRA contributions is NOT considered deductible income for UI purposes. However, there are exceptions: 1. If you're receiving REGULAR retirement payments/distributions, those ARE deductible 2. If you're withdrawing employer-matched funds, those MAY be deductible 3. If you're receiving payments from a pension fund based on previous employment, that IS deductible The reason for the confusion is that ESD's written materials don't clearly distinguish these cases, and unfortunately, not all ESD representatives are properly trained on this distinction. If you've made a one-time withdrawal of your own contributions, you technically don't need to report it. However, I always advise clients to call ESD and get the answer documented (ask for the agent's name and ID number, and note the date/time of the call).
I'm dealing with something similar right now - took out about $6k from my 401k last month for car repairs after losing my job. Been going back and forth on whether to report it too. Reading through all these responses, it sounds like the key thing is making sure it was YOUR contributions vs employer matching funds. I'm pretty sure mine was all my own money since I only worked at that company for 8 months before getting laid off. Still planning to call ESD to be 100% sure though - this stuff is way too confusing to guess on! Thanks everyone for sharing your experiences, really helps to know I'm not the only one confused by this.
You're definitely not alone in being confused by this! I just went through the same thing a few months ago. The 8 months at your company actually works in your favor - most of that $6k was probably your own contributions rather than employer matching since those usually don't vest immediately. When I called ESD (finally got through after using that Claimyr service someone mentioned), they told me that as long as it was my own pre-tax contributions I had made from my paychecks, it didn't count as reportable income for unemployment. But yeah, definitely get it confirmed with them directly since everyone's situation is a bit different. The peace of mind is worth the hassle of trying to get through to an agent who actually knows the rules!
Final plug for claimyr if anyone needs to actually talk to a Washington ESD rep about their business registration questions. Way better than the phone runaround, and their video demo really shows how simple it is to use.
Bookmarking this thread and that claimyr site. Bound to need it once I start dealing with Washington ESD regularly.
I went through this process about 6 months ago for my coffee shop. One thing that really helped was calling early in the morning (like right at 8am when they open) - much shorter wait times. Also, don't stress too much about getting everything perfect on the first try. You can always update your information later if needed. The hardest part is just getting started!
UPDATE: The money just hit my account this morning! So it took exactly 3 business days after the determination letter. Such a relief after 7+ weeks of waiting and stressing. Thanks everyone for your help and insights!
This has been super helpful to read through. I'm not starting a job yet but good to know the process for when I do. Thanks everyone for sharing your experiences!
One thing I haven't seen mentioned yet - make sure to keep your login credentials and account info handy even after you stop filing. If you need to access your payment history, 1099-G forms, or reopen your claim later, you'll want to be able to get back into your Washington ESD account easily. I made the mistake of forgetting my login info after I got a job and it was a hassle to reset everything when I needed it months later.
Sofía Rodríguez
Final advice: keep detailed records of all communications with Washington ESD, save copies of everything you submit, and don't be afraid to ask for clarification if you don't understand something in their correspondence. Good luck with your case!
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Mei-Ling Chen
•Thank you! I'm going to organize all my medical documentation and submit a thorough response to the fact-finding questionnaire.
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Salim Nasir
I've been helping people navigate Washington ESD disputes for years and your situation sounds very winnable. Medical absences with proper documentation are one of the weakest grounds for employer protests. The key is showing you followed their policies for requesting time off and had legitimate medical reasons. Make sure to emphasize in your fact-finding response that you provided advance notice when possible and had doctor's notes. Also highlight that you received no progressive discipline - verbal mentions during health crises don't constitute formal warnings. Washington ESD sees right through employers who try to rewrite history after layoffs. Stay strong and don't let them intimidate you into giving up benefits you rightfully earned!
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