<p>Why would a college financial aid initial form ask the following:</p>
<p>Did you or your parent(s) roll over a retirement account in 2013? If yes, please provide a copy of the 1099 documenting the rollover.</p>
<p>Do you think its to help your raise your efc?</p>
<p>Thanks</p>
<p>Because they want to be SURE you didn’t take money from your retirement account. If you did, it would be considered income. </p>
<p>If you roll over the money from one tax deferred account to another, it is NOT considered a withdrawal.</p>
<p>If it was a rollover and not a distribution it would reduce your EFC.</p>
<p>A rollover reduces the amount of untaxed income on the 1040 that counts as income in the EFC formula. The school verifies the amount of untaxed income that shouldn’t be counted in the formula by verifying that the distribution was a rollover. When a student is selected for verification, the parent must link to the IRS to directly retrieve the tax info … when the info is returned, there is no way for the school to know that there was a rollover. By collecting the info to verify the rollover, the school can then make the adjustment that will be necessary to correctly classify the rollover distribution.</p>