401k

[geye]

I've done a search, and the info out there is so confusing and conflicting, and many times not very specific.

So.
1. Chapter 7
2. Under median
3. NOT talking about passing means test
4. Specifically talking about a contribution vs. a loan repayment
5. Pass the means test easily without including it

With those in mind, is my 401k contribution included on schedule I or schedule J? Obviously, what I show for taxes being taken out is based on my pre-tax contribution to the 401k. If I'm not allowed to count the 401k contribution, my taxes would have to be adjusted upward, correct?

IF I'm NOT allowed to have a 401k contribution on schedule I or J (again, I'm NOT talking about the means test whatsoever..we pass that with like a negative 800 DMI), and it shows a DMI of, let's say, $200, and they say I don't qualify for Chapter 7, but then Chapter 13 allows the payment, and I end up with a negative DMI, so nothing to fund, what happens? Am I left in no-man's land?

Would it be better to stop contributing to the 401k now and just have a schedule I with the higher tax withholding, and a schedule J with expenses showing I have little or no DMI?

[geye]

nobody knows?

[jdcat]

Are you filing pro se? If not your attorney should be able to tell you what will fly in your district. We were concerned about this also, but apparently in our district the contributions were acceptable and placed on schedule I. Granted we are only contributing 1% right now. If you have a really high contribution you may get some flack but again a local attorney can tell you what's considered to high.

If you are filing pro se and are concerned about those contributions being to high perhaps you can lower them temporarily and absorb the extra income through schedule J expenses and taxes. If you're concerned about that that is.

[geye]

Have an attorney...he just wants everything as it is and he'll make it how he wants it after reviewing everything. I don't work well that way...I want everything the way it should be from the get-go

We contribute 5%, and have for quite some time. So it might be a district-specific thing?

[jdcat]

Yes, I think it is a district specific thing, but also a case by case thing. If your under median and the contributions aren't the make or brake factor on your schedules I and J then you should be ok. Plus you say you have a history of this level of contribution, that's a good thing.

If you were under median but didn't have the expenses required to "pass" and you had a higher contribution then you might run into some trouble. Might being the key word. Age is a factor also. If you're older I think there is a lot more leeway given when higher contributions are being questioned.

[geye]

Well, after thinking it over with DH, we decided to reduce the contribution to 1%-low enough that disallowing it wouldn't amount to enough to fund a 13. Problem solved.
Truth be told we could use the money right now, anyway. I've learned I was way off in my budget on how much gas I use

As for what our district allows, I found the court opinions, and most say that contributions are allowed in a 13 so that money can't be used as a source of funding. But then I found a few opinions that said with the totality of the circumstances, the contributions weren't really necessary. As DH has a pension, I could see them arguing that they aren't necessary.