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Allen M., Esq.
Allen M., Esq., Employment Lawyer
Category: Employment Law
Satisfied Customers: 18859
Experience:  Employment/Labor Law Litigation
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I have a question regarding unemployment payments in Texas.

Customer Question

I have a question regarding unemployment payments in Texas. I've been approved to receive weekly unemployment checks which should enable me to keep my head above water until I return to work. I've already transferred my 401k to an IRA. However, I'm wanting to withdraw enough $$$ to have my vehicle repaired (apx. $2500-brakes are out)and my mobile home insurance which is due in a month ($3200-I live on the Texas Gulf coast which is why it's so expensive). I don't know if a withdrawal will reduce my current payment amount. I'm 59 yrs. old and a single income home.
Submitted: 1 year ago.
Category: Employment Law
Expert:  Allen M., Esq. replied 1 year ago.

What matters, in terms of this being income is whether or not it is a periodic payment based on contributions from a "base period" employer.

So, if your question was whether or not IRA monthly payments (if you had reached retirement age and were receiving period payments) would count against unemployment, then the question would be whether or not that IRA or 401k issuing those payments were contributed to by an employer in the base period for which you are requesting unemployment benefits (employers in the last year or so).

But your facts don't fit that pattern. This is not retirement income derived from periodic payments. Instead, it is a lump sum withdrawal from savings

In fact, the Act makes it clear in Section 205.050, paragraph 5, that one-time lump sum payments or withdrawals are not periodic payments, and so are not deductible.

Customer: replied 1 year ago.
Hi, Allen M.I wanted to let you know I received your initial answer to my question but when I tried to reply to it ... well, I couldn't do it. I tried following the prompts but had no luck. That's why I signed off. After receiving a couple of emails from you, I tried again but had the same problem. I didn't know what to do after that. I just didn't want you to think I'd just "dropped off the map" for no reason. If you have an opportunity to call me, that would be great. My number is(###) ###-#### ***** for trying to help me out.... Robin
Expert:  Allen M., Esq. replied 1 year ago.

You've replied here. For me to call you, we'd have to set up an additional service at additional cost.

However, if you have follow up questions, you can use REPLY to ask them.

If not, take care and please rate my service for the response I've given thus far.

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