Unemployment Compensation Amendment Of 1992
Categories: Tax, Retirement, Company Management
It’s time. Time to leave the company you’ve been working for. But what about your 401(k) plan, which had a matching contribution up to 3.5%? Thanks to the Unemployment Compensation Amendment of 1992, it gets to come with you...even the employer match that’s been paid into it.
The Unemployment Compensation Amendment of 1992 allows ex-employees to keep the money that they invested and saved while working for their employer, no matter the type of pension plan. The amendment writes out the options for how this can be done, including transferring retirement funds into a new account.
Don’t think you can use the Unemployment Compensation Amendment of 1992 to get your hands on your retirement funds without penalty though. You can get the funds directly, but you’ll have to pay a 20% penalty to the IRS on it, so...better to transfer it and not touch it.
No touching!
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Finance: What are Unemployment Benefits?3 Views
Finance Allah Shmoop What are unemployment benefits Well a century
ago and you lost your job This is what happened
to you then this and then this Well the government
decided that America was better than this and that there
should be a shock absorber in the personal economies of
individuals when they were fired And yes sometimes employees did
such a lousy job at work They deserve to get
fired But other times cos downsized into higher divisions so
employees who are at no fault of their own were
fired And other times injuries illness and other factors played
a role in turning this guy into this guy So
the U S Government created an unemployment benefit system that
filtered through out the country And it was a kind
of buffer when an employee went from earning a grand
a week Teo nothing Unemployment benefits comprise a few things
Well first there's the money And in order for there
to be money in the till somewhere too Hey for
that unemployment benefit system the US introduced attacks that basically
socks away money for the future with certainty that well
at some point a whole lot of people will be
unemployed and appreciate the buffer It's a fair question to
ask What about the people who were planners plotters preparers
for a rainy day But why do you tax those
people so that they then pay for workers who got
fired and weren't disciplined enough to save their own damn
money Well it's kind of the price you pay for
being a superpower So yeah the US does have freeloaders
criminals leeches on the system lazy people and bad workers
But we have so many more of the good egg
kind of people that we can at least as faras
today goes afford TTO have a generous unemployment system So
how does one actually qualify for unemployment benefits Well usually
you have to have lived in your state for at
least a year before collecting them and typically you have
to show that you're continually actively seeking employment and not
just binging Handmaid's tale on your sofa And often you
have to show that you were laid off through no
fault of your own Like if you were fired from
RVs for throwing four pounds of roast beef at the
head of a customer No you'll probably need to look
into you know Plan B i e soliciting your family
for alone instead of hoping unemployment covers Yeah And well
don't expect the benefits to allow you to continue your
existing quality of life Generally even if you do qualify
for benefits well you'll get about a third or after
our last of your old salary So you're less likely
to end up on easy street with unemployment benefits than 00:02:29.25 --> [endTime] you are to end up on the streets