Josephine Norton
Retirement plans such as 401(k) plans, Roth 401(k), IRA, Roth IRA, pension, qualified annuity, SEP, SIMPLE or Keogh plan are not reported as assets on the FAFSA. However, untaxed contributions to and withdrawals from these accounts must be reported on the FAFSA as income.
| Characteristics | Values |
|---|---|
| Retirement plans | Not reported as assets |
| 401(k) | Not reported as assets |
| Roth 401(k) | Not reported as assets |
| IRA | Not reported as assets |
| Roth IRA | Not reported as assets |
| Pension | Not reported as assets |
| Qualified annuity | Not reported as assets |
| SEP | Not reported as assets |
| SIMPLE | Not reported as assets |
| Keogh plan | Not reported as assets |
| Pre-tax contribution to a 401(k) | Reported as untaxed income |
| Voluntary contribution to a qualified retirement plan | Excluded from income |
| Untaxed contributions to and withdrawals from retirement accounts | Reported as income |
What You'll Learn
- Retirement plans are not reported as assets on the FAFSA
- Untaxed contributions to 401(k) accounts must be reported as income
- Real estate investments (other than family homes) must be reported as assets
- Voluntary contributions to retirement plans are reported as untaxed income
- Cash in bank accounts is reported as an asset
Retirement plans are not reported as assets on the FAFSA
However, untaxed contributions to and withdrawals from these accounts must be reported on the FAFSA as income. This is to prevent a family from artificially reducing their income by increasing contributions to their retirement plans.
Any funds in a traditional retirement savings plan will not be reported on the FAFSA. So whether you have $5 or $5,000,000 in a 401(k), it will not affect the amount of financial aid you receive.
Other investments such as money in bank and brokerage accounts, UGMA and UTMA accounts, certificates of deposit (CD), stocks, cash stuffed in a mattress, trust funds, money market funds, mutual funds, stock options, bonds, other securities and commodities are reported as assets on the FAFSA.
Real estate investments such as businesses (including sole proprietorships and partnerships) and rental properties must also be reported as assets on the FAFSA.
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Untaxed contributions to 401(k) accounts must be reported as income
The FAFSA does not ask about the value of retirement accounts, such as traditional and Roth IRAs, 401(k) plans, and pensions. However, the untaxed contributions to and withdrawals from these accounts must be reported on the FAFSA as income. This prevents a family from artificially reducing their income by increasing contributions to their retirement plans.
Any funds in a traditional retirement savings plan will not be reported on the FAFSA. So whether you have $5 or $5,000,000 in a 401(k), it will not affect the amount of financial aid you receive.
Voluntary contributions to a qualified retirement plan, such as a pre-tax contribution to a 401(k), are reported as untaxed income on the FAFSA. This is because the contribution is excluded from income.
The FAFSA does not ask about the value of retirement accounts, such as traditional and Roth IRAs, 401(k) plans, and pensions. However, the untaxed contributions to and withdrawals from these accounts must be reported on the FAFSA as income.
The FAFSA does not ask about the value of retirement accounts, such as traditional and Roth IRAs, 401(k) plans, and pensions. However, the untaxed contributions to and withdrawals from these accounts must be reported on the FAFSA as income.
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Real estate investments (other than family homes) must be reported as assets
The FAFSA does not ask about the value of retirement accounts, such as traditional and Roth IRAs, 401(k) plans, and pensions. However, untaxed contributions to and withdrawals from these accounts must be reported on the FAFSA as income. Any funds in a traditional retirement savings plan will not be reported on the FAFSA.
The FAFSA does not ask about the value of retirement accounts, such as traditional and Roth IRAs, 401(k) plans, and pensions. However, untaxed contributions to and withdrawals from these accounts must be reported on the FAFSA as income. Any funds in a traditional retirement savings plan will not be reported on the FAFSA.
The FAFSA does not ask about the value of retirement accounts, such as traditional and Roth IRAs, 401(k) plans, and pensions. However, untaxed contributions to and withdrawals from these accounts must be reported on the FAFSA as income. Any funds in a traditional retirement savings plan will not be reported on the FAFSA.
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Voluntary contributions to retirement plans are reported as untaxed income
The FAFSA does not report qualified retirement plan accounts as assets on the FAFSA. This includes 401(k) plans, Roth 401(k), IRA, Roth IRA, pension, qualified annuity, SEP, SIMPLE or Keogh plan. However, the untaxed contributions to and withdrawals from these accounts must be reported on the FAFSA as income.
It is important to note that the FAFSA does not ask about the value of retirement accounts, such as 401(k) plans, traditional and Roth IRAs, and pensions. However, the untaxed contributions to and withdrawals from these accounts must be reported on the FAFSA as income. This is to prevent a family from artificially reducing their income by increasing contributions to their retirement plans.
In addition, the FAFSA does not report qualified retirement plan accounts as assets on the FAFSA. This includes 401(k) plans, Roth 401(k), IRA, Roth IRA, pension, qualified annuity, SEP, SIMPLE or Keogh plan. However, the untaxed contributions to and withdrawals from these accounts must be reported on the FAFSA as income.
Finally, it is important to note that the FAFSA does not ask about the value of retirement accounts, such as 401(k) plans, traditional and Roth IRAs, and pensions. However, the untaxed contributions to and withdrawals from these accounts must be reported on the FAFSA as income. This is to prevent a family from artificially reducing their income by increasing contributions to their retirement plans.
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Cash in bank accounts is reported as an asset
Retirement plans are not reported as assets on the FAFSA. This includes 401(k) plans, Roth 401(k), IRA, Roth IRA, pension, qualified annuity, SEP, SIMPLE or Keogh plan.
However, untaxed contributions to and withdrawals from these accounts must be reported on the FAFSA as income. This is to prevent a family from artificially reducing their income by increasing contributions to their retirement plans.
Money in bank and brokerage accounts, UGMA and UTMA accounts, certificates of deposit (CD), stocks, cash stuffed in a mattress, trust funds, money market funds, mutual funds, stock options, bonds, other securities and commodities are reported as assets on the FAFSA.
Real estate investments (other than the family home or a family farm in which the family resides), businesses (including sole proprietorships and partnerships) and rental properties must also be reported as assets on the FAFSA.
The value of life insurance and retirement plans as investments (401k plans, pension funds, annuities, non-education IRAs, Keogh plans) or cash, savings and checking accounts already reported in questions 41 and 90 should not be included.
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Frequently asked questions
No, you do not list 401k investments on FAFSA. Retirement plans such as 401k plans, Roth 401k, IRA, Roth IRA, pension, qualified annuity, SEP, SIMPLE or Keogh plan are not reported as assets on the FAFSA.
Retirement accounts are not reported on the FAFSA because the FAFSA does not ask about the value of retirement accounts. However, untaxed contributions to and withdrawals from these accounts must be reported on the FAFSA as income.
If a voluntary contribution to a qualified retirement plan is excluded from income, such as a pre-tax contribution to a 401(k), the contribution is reported as untaxed income on the FAFSA. This prevents a family from artificially reducing their income by increasing contributions to their retirement plans.
Any funds in a traditional retirement savings plan will not be reported on the FAFSA. So whether you have $5 or $5,000,000 in a 401(k), it will not affect the amount of financial aid you receive.
Money in bank and brokerage accounts, UGMA and UTMA accounts, certificates of deposit (CD), stocks, cash stuffed in a mattress, trust funds, money market funds, mutual funds, stock options, bonds, other securities and commodities are reported as assets on the FAFSA.
