Legal Question in Employment Law in California

I need to pay off debt and I asked my unemployment office if I could use my 401 K in order to do so and I was told I would lose my unemployment benefits, is this true or false?


Asked on 1/11/10, 6:01 pm

1 Answer from Attorneys
Robert F. Cohen Law Office of Robert F. Cohen

It would be considered income and be taxed at a hefty rate. You might consider taking a loan against the 401K instead. There won't be an IRS penalty. Or you might consider other alternatives, such as bankruptcy or negotiating with the creditors.

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Answered on 1/16/10, 7:09 pm


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