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John, Employment Lawyer
Category: Employment Law
Satisfied Customers: 4470
Experience:  Exclusively practice labor and employment law.
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I was off in December 2015. I requested and received my

Customer Question

I was laid off in December 2015. I requested and received my lump sum 401k before signing Servance Agreement and before applying for unemployment compensation. I deposited the funds into a High performance money market account as a holding until I roll it into a another qualified investment fund. The financial representatives told me that I have a year to roll the funds in order to avoid tax penalty. Do I need to report funds to unemployment even though I received funds before appling for unemployment and I plan to reinvest?
JA: Thanks. Can you give me any more details about your issue?
Customer: I received my 401k before I signed my severance package and before I applied for unemployment. Do I need to report it to unemployment?
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Submitted: 6 months ago.
Category: Employment Law
Expert:  John replied 6 months ago.
No those funds are not remuneration as defined by unemployment. The only instance where retirement funds would be considered remuneration is in the case of a defined benefit plan (i.e. a traditional pension where you receive a monthly payment until death) that was primarily funded by the employer.
Expert:  John replied 6 months ago.
I believe this answers your question. However, if you need clarification or have follow-up questions regarding this matter, I will be happy to continue our conversation – simply reply to this answer. If you are otherwise satisfied with my response, please leave a positive rating as itis the only way I am able to get credit for my answers. Thank you, ***** ***** wish you all the best with this matter.

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