Tipifarnib and Etoposide in Treating Older Patients With Newly Diagnosed, Previously Untreated Acute Myeloid Leukemia

Criteria: * Pathologically confirmed newly diagnosed acute myeloid leukemia (AML) * Subtypes M0, M1, M2, M4-7 disease * No newly diagnosed acute promyelocytic leukemia (M3) * Any of the following diseases: * De novo disease * Secondary AML * Myelodysplasia (MDS)-related AML (MDS/AML) * Treatment-related AML * Previously untreated disease * Patients who have received prior hydroxyurea alone or non-cytotoxic therapies for MDS (e.g., thalidomide, interferon, cytokines, 5-azacytidine, or revlimid) will be eligible for this study * Must be considered ineligible for traditional antileukemia chemotherapy * No hyperleukocytosis with ≥ 30,000 blasts/uL or rapidly rising blast count with projected doubling time of =\< 2 days * Patients may receive hydroxyurea to lower blast count to \< 30,000 blasts/uL up to 24 hours before beginning tipifarnib and etoposide * No active CNS leukemia * No prior tipifarnib or etoposide * No concurrent radiotherapy, immunotherapy, or other chemotherapy * No concurrent enzyme-inducing anticonvulsants (e.g., phenytoin, fosphenytoin, phenobarbital, primidone, carbamazepine, or oxcarbazepine) * Patients may be changed to non-enzyme-inducing anticonvulsants and stabilized before starting study treatment Inclusion Criteria: * ECOG performance status 0-2 * Serum creatinine =\< 2.0 mg/dL * SGOT and SGPT =\< 3 times upper limit of normal * Bilirubin =\< 2 mg/dL Exclusion Criteria: * Active, uncontrolled infection * Patients with infection under active treatment and controlled with antimicrobials are eligible * Presence of other life-threatening illnesses * Patients with mental deficits and/or psychiatric history that preclude them from giving informed consent or from following protocol * Allergies to imidazoles (e.g., clotrimazole, ketoconazole, miconazole, or econazole)