Is money from my IRA considered income? 20 Answers as of May 30, 2013

Will be filling Chapter7. Took out money from my IRA. To pay child support. Would the money be consider income?

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Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
No. That is not income.
Answer Applies to: California
Replied: 5/16/2012
Steven Harrell, Attorney at Law | Waymon Steven Harrell
It needs to be listed on your statement of financial affairs.
Answer Applies to: Georgia
Replied: 5/16/2012
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
Technically it should not since it is not steady income and IRA is exempt asset.
Answer Applies to: New York
Replied: 5/16/2012
Alvin Lundgren | Alvin Lundgren
Yes, money from an IRA is income.
Answer Applies to: Utah
Replied: 5/16/2012
Bankruptcy Law office of Bill Rubendall
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
Consult with an accountant to determine your income tax liability.
Answer Applies to: California
Replied: 5/16/2012
    Marc S. Stern
    Marc S. Stern | Marc S. Stern
    For bankruptcy purposes, it is not usually considered income. For tax purposes, it is.
    Answer Applies to: Washington
    Replied: 5/16/2012
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    Distributions from an IRA can be seen as income but if you paid child support then that is an allowed expense.
    Answer Applies to: California
    Replied: 5/15/2012
    Law Office of Pho Ethan Tran PLLC
    Law Office of Pho Ethan Tran PLLC | Pho Ethan Tran
    Yes. Money you withdraw from your IRA is considered income.
    Answer Applies to: Texas
    Replied: 5/15/2012
    R. Jason de Groot, P.A
    R. Jason de Groot, P.A | R. Jason de Groot
    Well, yes money taken out from an IRA early is considered income. Otherwise it is exempt from the claims of creditors. It is not, however, money from employment. So, if your question is whether it is to be considered income on Schedule I, my response is no.
    Answer Applies to: Florida
    Replied: 5/15/2012
    Burton Green, Attorney | Burton Green
    No. That is your money and is not treated as additional income for bankruptcy purposes.
    Answer Applies to: Florida
    Replied: 5/15/2012
    Law Office of D.L. Drain, P.A.
    Law Office of D.L. Drain, P.A. | Diane L. Drain
    Usually income received one time, with the exception of tax refunds, is not considered income for the mean's test. You will need to show it on the statement of affairs, unless it is a loan.
    Answer Applies to: Arizona
    Replied: 5/15/2012
    Law Office of David P. Farrell
    Law Office of David P. Farrell | David Farrell
    If you took a loan against your 401(k) it is likely not considered "income." Hire an attorney to represent you in your bankruptcy case.
    Answer Applies to: California
    Replied: 5/15/2012
    Olson Law Firm | Edward M Olson
    You will need to consult with your bankruptcy attorney to answer this question. Income is reported two different places in a bankruptcy petition. One place (Schedule I) is forward looking. The other place (Needs Test) incorporates past events. So, there are actually two places where you may need to record IRA withdrawals as income. Consult with your attorney.
    Answer Applies to: Michigan
    Replied: 5/15/2012
    Law Office of Kristen Allard Shier
    Law Office of Kristen Allard Shier | Kristen Allard Shier
    It depends on when your took the money out of your IRA. If you withdrew the money within the 6 months prior to filing your bankruptcy, the money would be included when calculating your average monthly. This may or may not be detrimental to you, depending on your total household income. You should speak to an experienced bankruptcy attorney about your particular situation prior to filing your bankruptcy.
    Answer Applies to: Colorado
    Replied: 5/15/2012
    Charles Schneider, P.C.
    Charles Schneider, P.C. | Charles J. Schneider
    Generally not. There is no unanimity on this point. It may depend on the frequency of withdrawals. It is, after all, income for tax purposes but in reality it is a withdrawal from a tax free bank account from income that was earned in the past.
    Answer Applies to: Michigan
    Replied: 5/15/2012
    The Law Offices of Deborah Ann Stencel | Deborah A. Stencel
    Different judges have different opinions on the answer to this question. You need to speak with an experienced practitioner in your area.
    Answer Applies to: Wisconsin
    Replied: 5/15/2012
    Bodow Law Firm PLLC | Ted Araujo
    Yes.
    Answer Applies to: New York
    Replied: 5/30/2013
    Law Office of Jeffrey Solomon
    Law Office of Jeffrey Solomon | Jeffrey Solomon
    There are differing opinions as to whether that withdrawal would be considered income for calculation for the means test. This issue can probably be dealt with by your attorney.
    Answer Applies to: Florida
    Replied: 5/15/2012
    Debt Relief Law Center | Roger J. Bus
    In the Western District of Michigan, income withdrawn from IRAs in the 6 months prior to filing bankruptcy must be reported on the "CMI" test.
    Answer Applies to: Michigan
    Replied: 5/15/2012
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