Coming from TLV you'll have to clear immigration and, since the outbound flight is to the US, go through normal plus an extra security check. If both legs are on the same PNR you should be able to through-check any bags, but whether they'll make connection is doubtful.

40 minutes if you're travelling light and solo would be pushing it, with kids and SWMBO in tow it's a silly proposition that's near certain to end in tears. Not even MUC will do you a 40-minute non-Schengen to US transfer, and they're the best in Europe at that particular game (35 mins intra-Schengen, with checked bags).