FAFSA, the IRS Retrieval Tool and Annuity Rollovers...

Paying for College
1

When going back into the FAFSA to use the IRS retrieval tool it gave an error message that I need to check the amount in the non-taxed annuity box to make sure it does not include roll-over amounts. It is all from a rollover. If I correct it, I loose all the retrieved info. If I don’t, I have to click “OK” and then I keep the retrieved info.

Daughter’s college said keep it in there (she lost all of her grants according to the FAFSA report at the end now). I am supposed to send a copy of the paperwork that shows it was a rollover and they will correct it on their end. Does that sound right? I have my son’s FAFSA, too in another state that I was able to link right when I did filled it out the first time. Now I am going to guess it wasn’t linked after I made the corrections after all. I will have to go back in and correct that, too.

I am sure I am not the only one dealing with this. What is the best way, expected way? FAFSA was no help when I called.

2

That seems right. There are times when things on the FAFSA need a second more detailed look to reevaluate the income profile. These typically fall under Special Circumstances for financial aid (for things like loss of income, death, divorce,…etc). Most of all colleges and universities have these procedures and as long as you provide them with all the information they need, this could be considered as a one time non-reoccurring income and potentially lower your EFC.

3

@kelsmom brought this up in another thread. check it out.

http://talk.collegeconfidential.com/financial-aid-scholarships/1839869-2016-2017-fafsa-asks-about-rollovers-p1.html