Hi, This past year my dad’s company cancelled their 401k so my dad had to rollover his savings to another company. Since this was a “rollover” I placed this number on question 94 (the one regarding pensions and untaxed savings). Is this correct? I callef fafsa and someone said yes and others said to not include it since it was a rollover, however the amount is listed in section 12a on the 1040A tax form
Thanks in advance!
If it went straight from one 401k to another 401k, or from a 401k to an IRA, you don’t report anything.
If it went from the 401k to a checking or savings account, or to an investment account that is not a formal retirement account, that would need to be reported.
There is a specific spot on the fafsa to note that rollover and a box to check.
If you don’t do that, it will be included as income.