Roth IRA distributions can be tricky on the FAFSA. For the 2025-2026 FAFSA, they're using your 2023 tax information, so that $7,000 distribution will be relevant. The good news is that if you only withdrew your original contributions (not earnings) from your Roth IRA, it won't count as income on the FAFSA. The FAFSA follows tax rules here - qualified Roth IRA distributions aren't taxable income. However, if any portion was earnings and wasn't a qualified distribution, that part would have been reported as income on your 2023 tax return and would therefore be included in your AGI on the FAFSA. The FAFSA doesn't have a specific line for Roth IRA distributions - they're captured through your AGI and other income questions. If your distribution was properly reported on your taxes, it should automatically be accounted for correctly when you enter your tax information. Just make sure you don't count this distribution twice by also reporting it separately as untaxed income, which is a common mistake.

Great explanation from Mei-Ling! Just to add a bit more clarity - since you mentioned this was a $7,000 Roth distribution in 2023, you'll want to check your 2023 Form 1099-R that you should have received from your IRA custodian. This form will show the distribution amount and importantly, the distribution code in box 7. If the code is "J" or "T", it typically means it was a qualified distribution of contributions only, which won't affect your FAFSA. But if you see other codes, some portion might have been taxable. Also, remember that while the distribution itself may not count as income for FAFSA purposes, any remaining balance in your Roth IRA is still considered a parent asset on the FAFSA and will be assessed at the 5.64% rate in the Expected Family Contribution calculation. If you're unsure about how your specific distribution was treated tax-wise, it might be worth consulting with a tax professional, especially since FAFSA accuracy is so important for financial aid eligibility.

my daughter got all her letters within like 6 weeks last year but then one school randomly sent a REVISED offer in APRIL that was way better than their first offer!! so sometimes they adjust things later too. just when you think the process is done they throw in more surprises lol

As someone who just went through this process with my oldest child, I can tell you that two weeks is still pretty early in the timeline! The 2025-2026 cycle has been particularly slow due to all the FAFSA changes this year. Here's what I learned: some schools send "early estimators" or preliminary offers to students they're really trying to recruit, which might explain why some of your daughter's friends heard back quickly. But the majority of schools are still processing applications and won't send final offers until March or April. My advice would be to check each school's financial aid portal (not just the admissions portal) to see if they need any additional documents. Also, don't hesitate to call their financial aid offices directly - they can tell you where your application stands in their review process. Most importantly, try not to stress about the timeline differences between students. Every application is unique and processed at different speeds depending on the school's resources and your specific financial situation. You're doing great by staying on top of this process! The waiting is definitely the hardest part.

this happens way more than ppl think! my brother had same issue but with his social security number being off by 1 digit. the system is so rigid it cant catch obvious errors

So glad you got this resolved! This is exactly why I always recommend double-checking every single field on the FAFSA before submitting - even the ones that seem obvious like birthdates. The new system is incredibly sensitive to data entry errors and doesn't have the same error-checking that the old one did. Your story is going to help so many other students who run into similar issues. Thanks for sharing the update!

update!! any1 see that email from studentaid.gov this morning? they finally admitted the system has major problems and theyre fixing the signature glitch this weekend! said all apps with signature errors will be reprocessed automatically

I'm dealing with the exact same issue right now! My daughter submitted her FAFSA in early February and we're getting that frustrating "signature required" error even though we both signed electronically. It's so stressful with college deadlines approaching. Reading through all these responses is actually really helpful - sounds like this is a widespread problem with the new system. I'm going to try checking both our FSA ID verification statuses like Connor suggested, and maybe look into that Claimyr service Paolo mentioned since I can't seem to get through to FSA either. Has anyone heard if schools are being understanding about these technical delays when it comes to financial aid processing? I'm worried this might affect my daughter's aid package even though it's not our fault the system is glitchy.

UPDATE: You were all right! My husband logged into his account and found he needed to re-verify his income information. There was an error flag on HIS dashboard that wasn't showing up on mine. He fixed it, signed his part again, and now we can see the application is fully complete. The SAI even updated (went down a little, which is good!). Thanks everyone for your help! For anyone else with this issue - definitely check ALL contributor accounts even if yours looks fine.

So glad to see this resolved! This is exactly why I always recommend having ALL contributors check their individual accounts when you get those "Action Required" emails. The FAFSA system does a poor job of communicating cross-contributor issues on the main applicant's dashboard. For future reference, here's a quick checklist when you get these emails: - Each contributor logs into their own StudentAid.gov account - Check for any pending signatures or verifications - Verify all tax information matches exactly - Make sure dependent/independent status is correct - Confirm all household members are properly listed The new system is definitely more thorough but requires much better communication between family members than the old FAFSA did!