Hello,
I’m helping my son prepare his FAFSA. I retired last year and rolled my federal Thrift Savings account into a 401K account. This amount shows as non-taxable income on our taxes and dramatically changed our income for the FAFSA. Our actual income was below $160K, but with this rollover we show to have an income of over $900K for the year. I rolled over this money and it was never in our hands. Our actual income is actually lower than previous years. Is there any way to address this where our real available income is the amount considered?
Yes, contact the FA office and they will override it. However, with an income of $160k, don’t expect much.
I thought this year’s FAFSA addressed rollovers…which were an issue when using the IRS Data Retrieval Tool.
@kelsmom??
I’m still working on it, so you may be right @kelsmom
Thank you for your quick replies, I really appreciate it.
We had a similar situation except with company stock. Call the school - they will probably remove the rollover and recalculate your EFC. Depending on the college you may or may not get FA with an income of $160,000.
Rollovers and FAFSA DRT discussed in this thread.
So,it sounds like this was NOT fixed this year! Bummer.
She described it strangely. Her income wouldn’t be $900k because the rollover wouldn’t be taxable.
Am I missing something? I thought direct rollovers don’t even have to be reported when doing taxes? I now see, with a little research, that the rollover is nontaxable but reportable.
(Had an additional question but figured it out)