NYS Tap IRA rollover question?

Paying for College
1

Filling out the New York State tuition assistant (Tap) application online, there is the question about pension income.

I’m not receiving any pension, however I had a rollover from a previous employers retirement account into an IRA. All of the funds in the account where completely rolled over. This shows up in the corresponding FAFSA as untaxed distribution, I think…

I want to avoid that Tab counts the rollover as income and possibly answering something wrong that throws off the calculation.

Have anyone encountered this issue?

2

In the FAFSA if it imports the tax return information, it will count the rollover as income.

You then have to put the amount of the rollover in the field where it asks for it.

If you miss it, I don’t think you can do it later.

But you can ask the school to correct the FAFSA, not sure if FAFSA helpline can do it as well.

The school will probably want the 1099R showing that it was a rollover.

3

Thanks mommdc. I believe I got the FAFSA application correct using the automatic tax return import and reporting the rollover.

After finishined FAFSA and continuing to the New York State specific aid application (TAP) there is a question:

“Did Parent 1 or Parent 2 have pension income in 2018?”

Again, I only had a direct 401k rollover into an IRA.
Not sure what to answer there in this respect
(no= I didn’t get a pension or yes=I did a rollover).

See also:

https://www.hesc.ny.gov/partner-access/financial-aid-professionals/how-to-fill-out-the-tap-application-2020-21.html

ps.
Tried reaching the help line, but the recording says the call center has now been redeployed to handle corona virus cases, which is obviously more important at the moment.