matched 401 contributions

[sadbutinneed]

Can you deduct 401k contributions on schedule I if you are only doing what will be matched by your employer? We are doing about 4.5% because that's the minimum to be matched. We are over the median and trying to qualify for Chapter 7.

Also - any experience in situations where you deduct from paycheck for a FlexSpendingAccount and then still have over the counter and med expenses on the schedule j form?

I'm in IL if it makes a difference.

Thanks!

[justbroke]

First, 401(k) contributions/payments are never deducted on Schedule I. Schedule I is only for mandatory deductions, like taxes, union dues and anything that you are forcibly required to pay. Technically, many Trustees don't even like health insurance on Schedule I, unless it's a mandatory thing.

Second, 401(k) contributions/payments are almost never allowed as an expense in a Chapter 7. You would have to have a special circumstance, and the threshold to define special is pretty high (like permanently disabled, very close to retirement age, etc).

You might be able to include FSA (flexible spending accounts) on Schedule J, but the Trustee may require proof (documentation which may include receipts).

[liz417]

I wasn't able to deduct my 401(k) contributions as an expense eventhough my employer matches 5%. Depends on the district/Trustee.