Will IRA and Pension Rollover Amounts Be Pulled Into the FAFSA Via FA-DDX?
Award Year: 2024-25 KA-36576 Helpfulness Rating 1,965 page viewsThis guidance is specific to the 2024-25 award year and later.
No. According to SAI-Q9/A9 in the U.S. Department of Education's (ED's) FAFSA Simplification Questions and Answers, untaxed portions of Individual Retirement Account (Individual Retirement Arrangement or IRA) and pension distributions will still transfer into the FAFSA using the FUTURE Act Direct Data Exchange (FA-DDX, formerly the IRS DRT) for 2024-25 and beyond, but there will be no back-end calculation of the rollover amount by the IRS. Therefore, the contributor will be prompted to manually enter the rollover amounts on the FAFSA.
Because of an update from the IRS, this is a change from information provided by ED at the 2023 NASFAA Conference. NASFAA has reconfirmed the above guidance with the U.S. Department of Education (ED).
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