Right… but the FAFSA has a question regarding this…and the amount needs to be entered…and some box checked…or it IS included!
I believe this is a situation where the DRT, which isn’t a factor if FAFSA is completed on paper, will bring over all untaxed IRA distributions and include them in untaxed income for the online version, even if some or all is from a rollover that shouldn’t be reported. That’s where the online version now allows the applicant to indicate that there has been a rollover, so that the amount rolled over can be excluded. On the paper version, that’s simply taken care of by instructing the applicant not to include an IRA rollover in the any amount reported in question 94.e.
My guess is the OP used the DRT and didn’t then exclude the rollover…or check the box referenced above. If that is the case, he will need to contact the colleges with the documentation of the rollover…and they will adjust.
@thumper1 is correct. You need to contact the schools to explain the issue & ask what they where you should send the documentation. An aid officer will need to make the updates to the FAFSA. It will definitely lower your EFC, so it’s important to spend some time to resolve the issue.
Rollovers are an issue the Dept of Education just can’t seem to figure out how to handle in a way that works for those completing the FAFSA. They keep making small improvements, but they do need to make it easier to figure out how to do it (and how to fix it if you miss it in the first place).
@thumper1 @kelsmom @BelknapPoint
Thanks everyone! We must have missed the checkbox. I’ll be sure to email financial aid offices this weekend.