I think things have gone OT on this thread. OP is asking how to minimize income and EFC on FAFSA.
Specifically asked whether suspending contributions to a retirement plan would support this minimization due to the fact such contributions are added back to income and there would be lower taxes subtracted from FAFSA formula if a contribution were made.
IMO, the above effect would be offset by the lower tax bill.
Lowering income by not taking capital gains, not exercising options , not taking distributions from pension plans can be done, but there often are financial benefits In other areas in making those moves.
If it is anticipated that taking money out of the retirement plans is in the picture, it would be preferable to simply not contribute to them instead,
Monetary gifts from grandparents, relatives should given to parents rather than to the student. Payment of student’s bills are untaxed income to the student and can increase the EFC. Kids’ assets should be spent for necessities or reimbursement of parents’ expenses rather than be sitting there and included in FAFSA assets. The day one filed FAFSA should be chosen carefully and in light of money sitting in accounts.