<p>Does the amount of money taken out from wages for the 401k affect financial aid? Because my parents made less this year but contributed more to their 401k and my efc went up.</p>
<p>The amount of money your parents put into their 401K in 2007 is added back in as income for 2007. I guess the easiest way to look at this one is the grand total...was the total of their salary and 401k MORE than it was last year? It sounds like it was.</p>
<p>The amount IN the 401K (not the contribution...but the amount in the account) is not considered an asset.</p>