Is 401k withdrawal income in Means Test ?

[hilll6]

I had to withdraw $6000 from my 401k to pay back spousal support . This was an early withdrawal as I am only 55. They held $1200 for taxes. I draw a pension and unemployment benefits. I Plan on filing chapter 7 in october because of the previous 6 month income. Do I have to include the 401k distribution ? I paid into this account.

Thanks. I am new to the forum.

[gmk]

Welcome to the forum.

I don't believe it counts as income on the means/median test, but the cash, unless spent down or covered by exemptions is an asset. In the future do everything you can to leave your 401k alone as it is exempt from your BK estate.

[JackBondLove]

It sounds like he had to pay $4800 in spousal support, so he should not have any cash.

This brings up a wonderful question about the status of alimony going forward from a Chapter 7. It would seem that once someone is Chapter 7, that the alimony should be ceased (or even set up in reverse ).

[albacore44]

no. at least in California. I needed to in order to pay my attorney.......He gave me the thumbs up.

[hilll6]

the withdrawal was for past and future alimony, so no problem spending it up. Alimony is not dischargeable.