<p>In order to reduce the EFC, will it help if I increase the 401(k) contribution so the adjusted gross income decrease?</p>
<p>or the total income considered for the EFC calculation is based on AGI+ Untaxed income.</p>
<p>Thanks for your help.</p>
<p>In the EFC formula contributions to 401ks and IRAs are added back to income before calculating the EFC.</p>
<p>On the other hand, the money you put into the 401(k) will not be counted as assets, but if you save it, say in a CD, it will be counted (again). So no net change on income but you might lower the EFC part based on assets…</p>