IRA Rollover & Financial Aid Implications

jtmoney
Sun, 12 Jul 2015 22:01:59 +0000

No matter how you do the rollover, the IRS DRT will show it as income and bump up your EFC, happened to me this spring, artificially doubling my EFC. If possible contact your FA office as soon as possible, get started on the paperwork they will need. Couldn’t do my DRT as quickly as I wanted, been dealing with appeal process since May. Keep signed and dated forms to show proof it was a direct rollover. I had a 1099R and also form 5498, also needed W-2’s, it was Catch-22, have to use DRT, but it’s conflicting EFC kicks you into the appeal process. You would think FAFSA and IRS could correct this glitch easily. Good luck.