Does cashing out a taking 401k as a lump sum affect unemployment benefits?

Question Details:

I was recently told that the plant were I work will be closing soon. I have a 401k, with a loan on some of it. I need the money to live on. If I cash this out will it affect my unemployment benefits? Is there a way it wouldn't? Could the 401k be paid on the last day I work for the company and not affect it? Yes my employer contributed some. And I am under the age of 59 1/2.

Answered 6 years ago| Contributor
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