Bunching IRA distribution income before 6 month measuring period in Chapter 13
Posted: Wed May 04, 2011 11:50 am
In an earlier post it was determined that IRA distributions voluntarily
taken within the 6 months preceding the month of filing are counted as
income in a Chapter 13.
However, in planning for a 13, if rather than taking $4K monthly
installments as my client has been, he takes $24K all at once now, and
nothing in the 6 months preceding the filing month of the case, then it
is not reportable as income on the 22C, correct?
The only thing I could think of that would present a problem is that the
fact that he took the $24K will show up on Statement of Financial
Affairs Question 1, and so the Trustee (who will be Rojas) will know
that we planned this and may make a bad faith objection.
The Debtor has three other streams of income: (1) SSI that doesn't
count on 22C (he's 70 years old) (2) Employment Income (3) Pension
income. So the IRA distributions would be the 4th stream. Does anyone
else see any problems with this approach?
Law Offices of Steven B. Lever
>
> Steven B. Lever
>( Tel. (562) 436-5456 ext. 6470
>( Fax (800) 360-5161
>* sblever@leverlaw.com
> www.leverlaw.com
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The post was migrated from Yahoo.