Daughter is going to Grad School starting Jan 2022. She and I will both fill out FAFSA applications in Oct 2021 for parent and student contributions. In 2020, I rolled over a 401K to Traditional IRA, now my Adjusted Gross Income looks like I make way more than I actually do and will probably exclude her from any financial aid. Did I mess up with rolling this over? In looking at the FAFSA application, I'm not seeing how you exclude retirement rollovers on their application.
Any thoughts??
Thx!
@toby8myshoe said "Rolled 401k to Trad IRA, Taxes didn't Change but AGI Increased".
You AGI (line 11 of form 1040) does not increase nor does your total income (line 9 of form 1040). The rollover amount goes on line 5a of form 1040 with the notation "rollover". It does not go on line 5b (taxable amount) and is therefore not added to your other income.
@toby8myshoe said "Rolled 401k to Trad IRA, Taxes didn't Change but AGI Increased".
You AGI (line 11 of form 1040) does not increase nor does your total income (line 9 of form 1040). The rollover amount goes on line 5a of form 1040 with the notation "rollover". It does not go on line 5b (taxable amount) and is therefore not added to your other income.
Thanks! I looked at my return and I see what you're saying. I was using the FAFSA import tool and it's grabbing the wrong value. It shows the AGI as the value with the rollover. It looks like I'll have to manually update the information in FAFSA when we apply.
Appreciate you pointing out the values in the return as that helped me understand what I need to do.
Thx!!