<p>My husband and I are retired. How will our pensions and SS factor into the FA picture? Has anyone delt with this? Is our income treated the same as someone younger?</p>
<p>Yes, your pension income and SS are your income for FA purposes. Though, your income is treated the same, the %s are less because of age, from what I understand.</p>
<p>As age increases, a larger portion of assets are excluded from the calculation. Income, though, is income.</p>
<p>Hello,
I entered my retirement income as "wages, interest..." on the FAFSA and CSS Profile. When the schools get my 1040, will they inquire about the total amount I have or just look at what I withdrew for 2004?</p>
<p>As Roger says "income is income". My understanding is that because you are retired, the %ages of contributions might be different than for wage earners. BUT your income is still viewed as income. If you have, for example, retirement income that is over $200,000 a year, your situation financially would be different than someone who has $30,000 per year of retirement income. The amount you have IN your retirement accounts is NOT considered by the FAFSA (assuming it is NOT in regular savings). Only the income drawn from those accounts is considered, I believe.</p>
<p>Assets in any qualified pension plan are not counted, but withdrawals , whether they are taxable or not are income. Any payments are also counted as income</p>
<p>Jamimom (and others who might know) --
If I have tax-deferred income in a retirement fund, is it counted as an asset for FAFSA? I thought that FAFSA counted as "income" wages that were deferred to an employer-sponsored pension plan or 401K. Do I NOT report those monies as part of my income? Thanks!</p>
<p>If you contributed before- tax money to a pension plan during that key year before your kid goes to school, you need to add it back into your income even though it escapes the IRS. It does not escape FASFA. But the money sitting in a retirement fund IF it is a qualifed Plan, does not need to be reported as an asset. Also any withdrawals from that fund are counted as income even if they were after tax contributions. Anything not counted as asset that is withdrawn becomes income.</p>