This study aimed to examine the relationship between psychological distress and poverty among Japanese workers during the COVID-19 pandemic. An Internet-based prospective cohort study was conducted. A total of 11,081 individuals who were not experiencing poverty at baseline in December 2020 were included. The exposure variable was psychological distress evaluated using the Kessler 6 scale at baseline. The outcome variable was whether participants were experiencing poverty at the 1-year follow-up, as defined by household financial distress. Compared with individuals without psychological distress, the adjusted odds ratios of household financial distress among those with mild and severe psychological distress were 2.88 (95% confidence interval, 2.47-3.33, P < 0.001) and 3.19 (95% confidence interval, 2.52-4.04, P < 0.001), respectively. Workers' psychological distress is a notable public health concern in the context of poverty.