IRS Data Retrieval & Retirement Rollovers - FAFSA

Paying for College
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<p>I have two questions about the IRS Data Retrieval for FAFSA. I tried to use the data retrieval for my son and it didn't work. However, the retrieval worked for me. My son had to pay which he did electronically. The money has already been deducated from the account. I received a refund and filed later than my son. Has anyone else had this problem? Should I just wait a bit longer and try again for my son? </p>

<p>Also, I rolled over an a retirement plan and 401k into an IRA because the company for which I worked was sold. I didn't take any distribution. It was a direct rollover. On my 1040 it is listed as a distribution on 16a and then rollover is typed into 16b. When I did the data retrieval, FAFSA is reading this as income because our EFC went up over $24k. I know that this is wrong. Is it okay to manually change something on the FAFSA after you have done data retrieval? This rollover does not show as income on either my 1040 nor the 1099-Rs that I received. </p>

<p>UGH - I thought I was nearly finished.</p>

<p>Thanks in advance for any assistance.</p>

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<p>Re the rollover, has your fafsa been selected for verification? My son’s was when this happened to me 3 years ago. I contacted the school and they had me send a signed copy of our tax return showing rollover on the 1040 line. The DRT doesn’t handle this properly as you found out. As I recall, a tax transcript didn’t show it properly either. It may be ok to just update that in fafsa if your son’s fafsa hasn’t been selected for verification but you should probably still contact the school(s).</p>

<p>Re your son, the DRT should be available shortly but it’s somewhat unpredictable when the DRT will work when a payment is owed. Again whether the fafsa has been selected for verification matters. If not, you can just update his manually.</p>

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<p>Thanks annoyingdad. Just wanted to extend a thank you in general to you. Some of your other posts have been very helpful to me! :slight_smile: The FAFSA has been selected for verification. I am going to go ahead and change the number to 0 for the retirement income and resubmit the FAFSA. I have the 1099s and IRA statements to support the rollover. Also, my son is at a CSS profile school; therefore, I have to submit a copy of my tax return to IDOC where Rollover is clearly marked on line 16b. </p>

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<p>Since you’ve been selected for verification the school will definitely be notified you’ve made that change after using the DRT. I did that too and then contacted the school about how to show it was a rollover. Your IDOC return submission may be enough but you might still want to ask. You probably have a later deadline as a returning student. Try the DRT for your son for a few more days. It could be that it takes a few days after payment is withdrawn for the return to be ‘finalized’.</p>