Starting 401K After Filing, But Before Confirmation

[minan]

Other half is getting a 2% pay raise. We would like to put this raise into 401K and join our employer's 401k as they match up to 3%. We filed last summer and have no retirement account at all. We need to start as we are in our 40s now.

We are not confirmed yet so want to know if there is any issue with starting a retirement after filing?

[lrprn]

As long as you can continue to make your confirmed plan payments on time, any money left over after paying your Ch 13 payment and all your 'outside the plan' assets, utilities, and living expenses is yours to do what you want with it.

Do you have a sufficient emergency fund already in place? I'd do that with the extra income before putting it into retirement where you can't get to it quickly in an emergency without financial penalties.

Be sure to run this plan past your lawyer before doing anything just in case your trustee is one that may have issues with starting or changing retirement contributions after filing because it's taking away disposable income that could be going to your creditors. Better to be safe than sorry.