retirement accounts

[sumoboy]

I was wondering if anyone had opened or contributed to a retirement account (IRA, 401k) while they where making payments to the Chapter 13 trustee.

I currently have a 401k that I have been contributing to since Feb 2007

[Flamingo]

There has been quite a bit of discussion in here about your topic over the past few years. Do a search because it appears some people have been allowed to continue to contribute or contribute at a low rate or have to stop contributing. I had to stop prior to filing due to my husband's severe loss of income which eventually led to our filing Chapter 13 and was advised by our attorney that I would have had to stop contributing anyway if I had continued. I requested about 3 years into our Plan if it was possible to contribute 1% of my income back into my plan (my employer matched 100% up to 6% and I felt like I was just throwing money out the window if I could not try to save something). I was advised to go ahead but if the contribution interfered in any way with us being able to make our Plan payment, I was to stop immediately.

It appears to vary from trustee to trustee, case to case. Best to ask your attorney as to your specific situation.

[HHM]

Most of the questions in this forum on that subject related to whether you can claim the 401K contribution as an expense on schedule J and thus reduce your disposable income, and trustees and BK courts take varying views on that question.

If your question is more along the lines of, once you are already into your chapter 13, can you contribute (off the books so-to-speak), the answer is yes. But as Flamingo points out, if the contribution in any way begins to jeopardize your chapter 13 plan payment, you need to stop it.

[jgarton244]

I was able to contribute to my 401k plan, but only at the level that obtained maximum matching from my company (they matched 50% of my contribution, up to 6% of my salary.). Our attorney told trustee that the 401k plan was our retirement plan, and I would lose significant company matching funds if not allowed to continue. In our case, it was approved, but each case can vary in the outcome.