Update for you guys:
We called the FAFSA office twice today. The first time, we were told that we had to contact every college that we included on the list individually and provide proof so that they could make the correction- just like you guys said. I’m applying to eleven colleges, so we knew we had to get started pretty quickly. We sat down and contacted 2 colleges; both told us that they could not and would not make that change or look at any tax forms until after I was admitted, which makes complete sense.
But the last thing I want is to be in this tenuous situation until March, so we called FAFSA again. This time, a really helpful employee told us that this situation was unavoidable; there was no way we could have used the data retrieval tool and prevented the income inclusion without provided proof. So, she’s going to send us a paper form where we can include our tax and rollover information, sign it, and send it back so that they can make a correction. It’ll take a few weeks, but it’s much better than having to wait to contact all of my colleges.
Fingers crossed that this works, and thank you all for the help- we wouldn’t have figured this out without it.