AGI and 401K

Paying for College
1

<p>Our AGI is under $100,000 in part because of th 30% contribution to a 401K plan. Will the 30% that we contribute be added back in as income when our EFC is calculcated or is this an allowable deduction?</p>

2

<p>It will be added back in.</p>

3

<p>Although IMO- a certain allowance could be made, especially for people who are behind on retirement savings-but dukedad is correct- it will be added back into available income.</p>

4

<p>Will they allow other federal deductions that decrease your income to come to your AGI such as property taxes, mortgage deduction and standard deduction?</p>

5

<p>You can work through the calculations here: <a href=“http://www.ifap.ed.gov/efcformulaguide/attachments/082511EFCFormulaGuide1213.pdf[/url]”>http://www.ifap.ed.gov/efcformulaguide/attachments/082511EFCFormulaGuide1213.pdf&lt;/a&gt;&lt;/p&gt;

6

<p>Thanks everyone!</p>