Oops! Roth 401K contribution reported in CSS Profile for Tax Deferred RetirementPlans

Submitted the CSS Profile and realized after that I may have made a mistake by reporting a Roth 401K contribution (w-2 code AA) in the Tax deferred retirement savings plan spot. Did I? And how do I correct after submission? Thanks

@BelknapPoint was this a mistake?

@bethellenk if there is a mistake on the Profile, you need to contact the colleges to find out how they want the correction(s) done. You cannot do it online.

The colleges will tell you what to do. Do your kid’s colleges use IDOC?

Was your FAFSA done correctly?

A contribution to a Roth account is different than the current balance in a Roth account. I think the current balance in a Roth account should be grouped and reported with other qualified retirement accounts, even though a Roth account is not technically “tax-deferred.” For the 2021-2022 Profile that uses 2019 income and tax information, a 2019 Roth contribution will generally be included in the AGI figure reported for 2019.

A past CC thread on the same subject here:

https://talk.collegeconfidential.com/financial-aid-scholarships/1404220-roth-401k-and-the-css-profile.html

Thank you. Yes it is a mistake I think. The W-2 contribution code under box 12c is AA which is for a designated Roth 401k plan. So already taxed I believe. This code is not listed on CSS which is why I also think I made a mistake entering in that box. I did include the overall value of 401k retirement plans in our assets correctly.

Just started working on FAFSA

The Roth contribution should not have been reported. That amount already included in your income that year You’ve now double counted the amount.

Roth account balances should be treated as other IRA and 401k Accounts.

It’s a pain to correct because you do have to directly contact each financial aid office that got that Profile.