Have a ? If they do not count 401 on means test do they count it as disposable income? We both started putting into one because to offset taxes so I would not owe so much.
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401k contributions and loan repayments can't help you pass the means test but they do reduce income available to fund a ch13 plan since they are not considered "property of the estate". Thank you Sen. Ted Kennedy for this provision.filed chapter 13..confirmed...converted to chapter 7...DISCHARGED! -
Catleg, can a C-13 payee get away with having both 401(k) loans and new 401(k) contributions at the same time?Comment
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It depends on the customs in your local court and what the total contribution/loan amount is. I was allowed both a loan payment and contribution, but the total of the two is less than 5% of my gross income.Originally posted by Slingerland View PostLadyInTheRed is in the black!
Filed Chap 13 April 2010. Discharged May 2015.
$143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!Comment
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Yes, there is no limit written into law, other than the IRS maximums. However certain districts are stricter than others and will zing you with "totality of circumstances" or "good faith" objections. It's probably best if you can show a continuing history of contributions, rather than just starting right before filing.filed chapter 13..confirmed...converted to chapter 7...DISCHARGED!Comment
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Thanks! In my case, I use the 401(k) contributions to lower my taxable income and that allows me to take more of my passive real estate loss (depreciation) off my taxes. If I cannot make a 401(k) contribution, I have to raise my withholdings instead... the payment plan stays the same
My attorney was chuckling when he thought about how to explain it to the trustee...Comment
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