My wife and I are separated and she lost her job. As a result, she withdrew the entire amount, no penalty, and used it to set up her life in another city. She took the remainder (about half of the 85K spendable portion) within the 60 day IRS window and put it into a standard IRA (Roth's are not acceptable) to ease the tax burden next year and protect it from the future trustee. She must file a Chapter 7 as we have two real estate loans upside down by $200K and she is too old to expect to pay on any 5 year plan and be able to comfortably live from the next new job she gets. Her six month income before January averaged $9,000 per month. I am wondering how long she will have to wait to file if this 401K income is considered in the six month average.