Financial Aid
Rollover IRA or Pension Income

The Financial Aid Office has recently been notified of a defect within the Internal Revenue Service Data Retrieval System.

This defect only applies to students or parents that meet all of the following criteria:

  1. Used IRS Data Retrieval to pull tax information into the FAFSA.
  2. Reported IRA or pension distributions on line 15a or 16a of their federal 1040 tax return.
  3. "Rolled over" all or a portion of the funds on lines 15a or 16a into another qualifying IRA   account or pension plan.

The defect results in rollover exclusions being added to the FAFSA as "untaxed income" which could have erroneously inflated the Expected Family Contribution (EFC), affecting aid eligibility.

If you meet all of the criteria above, and are unsure of whether or not you had rollover funds, please look at the distribution codes on your IRS 1099R forms. The 1099R is the form in which IRA and pension distributions are reported to the IRS. Acceptable rollover distribution codes are G and H. If your 1099R reflects a G or H rollover distribution code, then please copy and mail or fax copies of rollover 1099R forms to:

FSU Office of Scholarships and Financial Aid, Attention Melanie Mulder

1201 S. State Street, CSS 101 Big Rapids, MI 49307

FAX (231) 591-2950

Upon receipt of 1099 R forms, we will submit corrections to the student FAFSA, recalculate the EFC, and revise financial aid awards as appropriate, based on the availability of funds. You may direct any questions regarding this issue to mulderm2@ferris.edu.

 

 

 

 

 

Last updated: 11-27-2012