<p>Does the CSS Profile just add these fully back into your income, or just a percentage of it?</p>
<p>In other words, am I better off not bothering to maximize any retirement contributions for the sake of reducing income?</p>
<p>Depends on the school as to whether or not they count monies that are already in your 401k. However, they will look at your whole contribution in the year that you made it as monies that can be used for college.</p>
<p>While the FAFSA does not count monies already in your 401k, they add back the total dollar amount that you contributed to the 401 as income. For example, if your child is applying to college in 2013, you will fill out the fafsa using 2012 income. If you put 20k in your 401k, the 20k will be added back as income for your fafsa EFC.</p>
<p>Only you can decide what is best for you:</p>
<p>You can reduce the amount you contribute while your child is in college</p>
<p>you can continue saving at the same rate and just eat the higher EFC</p>
<p>You can continue saving and if your plan allows, borrow from your self if you need to vs taking a PLUS or HELOC/HE Loan.</p>
<p>or any other option that works for your family.</p>