Not sure if this is the right place to ask. Someone asked on another page. Do I need to put 401k contributions on fafsa?
Thank you to the moderators for spinning this off into its own thread!
The contributions you make to your 401K for the year of that FAFSA will be added back in as income. There is a question, I believe related to contributions to tax deferred retirement plans. @kelsmom
That’s correct. Retirement contributions are reported under parent’s untaxed income. For 2022-23, the relevant question/explanation is 92a. https://studentaid.gov/sites/default/files/2022-23-fafsa.pdf
Still confused, sorry. For fafsa in October, put in 2021 401k contributions as untaxed income, right???
crosspost with kelsmom
No, you will use prior prior year (2021) income tax returns to complete the FAFSA which is available 10/1. You will use asset values as of the day you file FAFSA.
For the 2022-2023 FAFSA, you will use 2020 tax return and tax year information. Your 401 K contribution from 2020 will be what is used.
Assets don’t include the balances in your 401 K accounts.
OP, just follow the directions on the FAFSA when it’s available. There are also many helpful info buttons to click on if you have questions (assuming you are filing electronically). This book also discusses how to answer every single question on both FAFSA and CSS Profile. Paying For College 2023
But, between the FAFSA help tool, and the Studentaid.gov website, you probably don’t need it, unless you have a complex situation.
It’s for the 23-24 school year, so 2021 taxes?
23-24 school year, isn’t that 2021 taxes?
Yes. For the upcoming FAFSA opening 10/1 for 2023-24, 2021 is the base year.
Yes…for 2023-2024, you will use 2021. Sorry…my brain hasn’t fully transitioned to the next academic year yet!
One more question since you all seem to have done this before, for stocks, that day’s value or is my last statement good enough?
It’s supposed to be as of the day of your filing….so go online, and get that amount.