At this point, I suspect we can confuse OP.
He or she can check with the employer whether this retirment is a “Qualified Retirement Plan.”
I also suggest that, if there’s confusion about how a QRP is treated, OP call colleges and ask.
I suppose some college could consider QRP funds- but not sure we know which or how prevalent that is. It was described as simply to guage future fin stability. I can’t imagine a school asking parents to break open qualified retirement funds. They could, however, see the plan is loaded and judge other income and assets accordingly.
"Retirement assets such as 401k, 403b, IRAs, SEP, SIMPLE, Keogh, profit sharing, pensions and Roth IRAs are not included in the calculation of EFC under any of the three EFC methodologies. Assets that aren’t in retirement accounts — balances in checking, savings, CDs, brokerage accounts, money market, investment real estate, stocks, bonds, mutual funds, ETFs, commodities and 529 college savings and prepaid plans—do get included in the EFC formulas.
https://www.forbes.com/sites/troyonink/2017/01/08/2017-guide-to-college-financial-aid-the-fafsa-and-css-profile/#460f0b154cd4
But I’m not going to debate.