Could a CARES Act withdrawal impact eligibility for unemployment benefits?

Yes, such possibility exists. Each state sets its own unemployment insurance benefits eligibility guidelines; therefore, it’s important to review your state’s latest updates on unemployment insurance changes related to COVID-19 before taking a withdrawal. Because a pre-retirement distribution may be considered “income,” it could affect eligibility for unemployment compensation.

BACK

Cetera Retirement Plan Specialists is a third-party administrator and may not offer tax, legal or investment advice. Plan sponsors should consult their own tax, legal or investment professionals.