Should a Pre-Tax Contribution In Box 14 Of Form W-2 Be Reported As Untaxed Income On The FAFSA?

Scenario: The Form W-2 includes an amount in Box 14 that is identified as "414(h)" and appears to be a pre-tax contribution to a government retirement fund.

Answer: No. Starting with the 2024-25 award year under the FAFSA Simplification Act, discretionary (optional) or a non-elective (mandatory) pre-tax contributions to a retirement or pension fund are not reported on the FAFSA, are not included in need analysis, and are not other financial assistance (OFA) when packaging the student with Title IV aid. See AskRegs Knowledgebase Q&A, What Untaxed Income Will Be Included On the FAFSA For Need Analysis In 2024-25 and Beyond?

Student Aid Reference Desk: For additional information, try the Student Aid Reference Desk. It is a central hub of all the important financial aid resources you need with direct links to legislation, regulation, Dear Colleague Letters, and other ED and NASFAA references. It is updated on a rolling basis with the latest news and changes.