IRA Rollover & Financial Aid Implications

4kidsdad
Sat, 11 Jul 2015 22:42:16 +0000

We cannot afford for this rollover to change our EFC

It will not. However, if you using IRS DRT to transfer data from your tax returns to the FAFSA, the rollover amount (from the 1099-R) will be included in your untaxed income on the FAFSA. See http://www.marquette.edu/mucentral/financialaid/resources-verification-ira-rollover-1415.shtml

The Data Retrieval Tool (DRT) does not exclude tax return IRA and/or Pension Distribution Rollovers from untaxed Income.

The DRT will include an IRA and/or Pension Distribution Rollover in your untaxed income on the FAFSA.

This may result in a higher Expected Family Contribution (EFC) and decrease in your financial need.

See the Marquette link for “What to do”