CSS Profile question regarding current value of retirement plans: Says “Report the total amount, regardless of whether the contributions were from this parent or by their employer. For defined benefit plans, use the most recent account statement that shows the current net worth based on employee contributions.” Just confused as the first part says regardless if from parent or employer…but later says current net worth based on employee contributions… My pension is an employer contribution only plan.
When you say later, do you mean a different question?
You may want to call the financial aid office and ask. DB plans are tricky. Lots of people make mistakes in the retirement part of FA forms, and it usually costs them money. Let us know what you find out!
Yes, please tell us which specific question or questions you are having trouble with. This will help us find the best answer for you.
Okay sorry to not be clear: The question reads:
Participates in the following retirement plans:
IRA, Keogh, 401k, 403b, or other tax-deferred retirement plan
Plans to draw social security upon retirement
Employer sponsored retirement plan
Civil service or state sponsored retirement plan
Union sponsored retirement plan
Military sponsored retirement planOther type of retirement plan
Current value of tax-deferred retirement, pension, annuity, and savings plans*****this is the part that I am questioning, current value of pension plan.
When I click on the help box it reads this: Report the total amount, regardless of whether the contributions were from this parent or by their employer. For defined benefit plans, use the most recent account statement that shows the current net worth based on employee contributions.
The first sentence of the help box says regardless of whether the contributions were from this parent or by their employer…but the second sentence says the net worth based on employee contributions. I, as an employee, have not contributed to the pension plan at all, only my employer has. So I am not sure if am supposed to include the current value of my pension plan if I have not contributed to it…so I did not tax defer any moneys of my own into this account…?
Actual retirement plans, (as opposed to some savings you earmarked on your own,) are “qualified plans,” QP or QRP. Those are protected assets. They give the college a sense of your future security.
The first question refers to totals. The DB question refers to an employer plan, itself. Aiui.
The only mistake that costs you aid is in rolling QP amounts into general, non protected assets.
It sounds like you might have a defined contribution plan (that has only so far accumulated employer contributions) and not a defined benefit plan. Are you vested in the employer contributions? If it’s not a defined benefit plan, the second sentence in the help box is not applicable, and you should report the total balnce of the account as of the day that you complete the form.
Thank you all very much.
It doesn’t seem lie the question was answered for cases where one has an employer provided defined benefit plan. IF the value zero because the value is all based on employer contributions rather than employee contributions?
Fixing some typos: It doesn’t seem like the question was answered for cases where one has an employer provided defined benefit plan. Is the value zero because the value is all based on employer contributions rather than employee contributions?
“For defined benefit plans, use the most recent account statement that shows the current net worth based on employee contributions.”
My reading of this language form a Profile help box is that the net worth of a defined benefit plan is only reportable to the extent that employee contributions have been made. If there have been no employee contributions to the plan, then there is nothing to report.