Mrs. Ciz
DIS Veteran
- Joined
- Feb 17, 2011
Thank you so much for explaining it to me!!! Now I just need to check to see what we did.I think I realized it by looking up "common mistakes on the FAFSA"...and yet some articles don't specifically talk about it. Here's a quote from one webpage "FAFSA lines 44A through 44J and 92A through 92I ask about untaxed income. The amount of contributions made to a 401(k) account must be listed here. While the contributions might be tax free, this income is counted on the FAFSA and can impact the amount of financial aid you will receive. "
Basically, your 401K built up savings aren't counted....but...for whatever tax year you are reporting on the FAFSA, you're supposed to report how much you put into tax deferred retirement savings. You report it on the line called "untaxed income". So, it's not the accumulated value of your 401k...just what you put in that year that you have to report on the FAFSA.