claim retirement account withdrawal as income?

[GPFAY]

on march 30th i took 5k out of my retirement acct,paid the penalty and taxes
question is does that count as income i have to put down for my means test
am hoping to file chapt 7.my attorney advises that i should wait another 3 months,so that when they review my earnings for the last 6 mos,that disbursement won't be on there.i am not sure i can wait another 3 mos.-creditors are all over my backside..garnishment threats,judgements etc...also even with the 5k ,my gross wages are still only 3k/month.any thoughts?thanx in advance.

[SinkingFast]

on march 30th i took 5k out of my retirement acct,paid the penalty and taxes
question is does that count as income i have to put down for my means test
am hoping to file chapt 7.my attorney advises that i should wait another 3 months,so that when they review my earnings for the last 6 mos,that disbursement won't be on there.i am not sure i can wait another 3 mos.-creditors are all over my backside..garnishment threats,judgements etc...also even with the 5k ,my gross wages are still only 3k/month.any thoughts?thanx in advance.

I THINK, technically a 401K withdrawal would be income. If that's the source of your retirement acct withdrawal, and it puts you over the Median, I'd agree with your attny. Wait.

I don't know for sure and it sounds like your attny doesn't either. Which isn't a surprise with the New Law. We sold stuff to get money to pay taxes and make ends meet. In our case, we sold things for less than we paid or the depreciated market value. Quick sale, as it were. Not one attny we Consulted with considered the monies from the sales of property to be income.

My line of reasoning here is,.......... 401K monies are wages you earned but deferred on a pretax basis. That's why I think it might be considered "Earned Income" on the Means Test. Could be your attny is thinking the same thing too.