401K/Pension Payout

[RNprincess]

Hi all.....getting ready to file, but am unsure about some numbers for the means test. Have the NOLO book, but don't see the answer there.

We pass the means test, if we use our income. However, since we moved from Florida to Mass we changed jobs. My husband had a small 401K that we knew about and a small pension that we didn't know about. The amounts on each were about $2000 and $3000 each, and we cashed out each of them to use for deposits/first months rent and to catch up on bills and household expenses. However, these amounts push us over the median.

1. Do I need to input these amounts in the means test? If so, where do they go? (The only area I see is Line 7)

2. If these amounts push me over the median, would I be better waiting 6 mos for them to fall off? (Especially if I plan on filing Pro Se)


Thanks for the help!!!

[justbroke]

1. Do I need to input these amounts in the means test? If so, where do they go? (The only area I see is Line 7)

On the Means Test (Form B22A), I'd include them on line 1 which is the income line. I wouldn't include them on Line 7, as that's for recurring income received from retirement... not a one-time distribution. At least that's my thought.

2. If these amounts push me over the median, would I be better waiting 6 mos for them to fall off? (Especially if I plan on filing Pro Se)

The median isn't going to bother as much as having disposable income, sufficient to fund a Chapter 13. So, on Form B22A (the Means Test), would would take $3K + $2K ($5K) and divide by 12 to get a monthly amount. that's $416.67/month. So long as your disposable monthly income is still lower than $109 I don't see any problems. If your DMI is negative... even better!