Accidentally reported retirement account on FAFSA - can I fix this mistake?
I think I just made a huge mistake on my FAFSA application for 2025-2026. I included my aunt's retirement account ($84,000 in a 401k) as part of our household assets. After submitting, my friend told me retirement accounts aren't supposed to be reported on FAFSA. Now I'm panicking because this will probably reduce my aid by thousands! Can I somehow redo my application or submit a correction? Has anyone dealt with this before? Will this completely mess up my financial aid package?
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Avery Davis
Yes, you can fix this! Retirement accounts (401k, IRA, etc.) are NOT supposed to be counted as assets on the FAFSA. You need to submit a correction as soon as possible. Log into your studentaid.gov account, select your FAFSA application, and click on "Make FAFSA Corrections." Then navigate to the assets section and remove the retirement account value. Submit the correction and you should be good to go.
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Ev Luca
•Thank you SO MUCH! I'm logging in right now to fix it. Do you know how long it takes for corrections to process? I'm worried this will delay everything.
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Collins Angel
dont stress to much about it. i did the same thing last yr with my dads pension. the financial aid office at my school actually caught it during verification and fixed it for me without me even realizing id made a mistake lol
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Ev Luca
•That's reassuring to hear! I'm still going to try to fix it myself though. I'd rather not leave it to chance.
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Marcelle Drum
This is actually a very common mistake. Retirement accounts (401k, 403b, IRA, pension plans) are protected assets under the FAFSA methodology and should NOT be reported. The good news is that the FAFSA correction process is straightforward. Here's what to do: 1. Log into studentaid.gov with your FSA ID 2. Find your submitted FAFSA 3. Select "Make FAFSA Corrections" 4. Navigate to the financial information section 5. Remove the retirement account value 6. Re-sign with your FSA ID and submit Corrections typically process within 3-5 business days, and your updated SAI (Student Aid Index) will be sent to your selected schools automatically.
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Ev Luca
•Thank you for the step by step instructions! I just followed them and submitted the correction. It was actually much easier than I expected. Fingers crossed my SAI will be recalculated soon!
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Tate Jensen
Wait I'm confused now... are we NOT supposed to include retirement accounts?? I included my mom's IRA on mine because I thought all assets counted? Now I'm worried!!
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Marcelle Drum
•Correct - retirement accounts should NOT be included on the FAFSA. This includes 401k, 403b, pension plans, IRAs, etc. These are protected assets under federal methodology. You should submit a correction to remove your mom's IRA from your application.
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Adaline Wong
Ok but what about REGULAR savings accounts?? Those DO count right? And what about my parents house? This whole system is so confusing I want to scream. Every time I think I understand FAFSA they change something!
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Avery Davis
•Yes, regular savings accounts, checking accounts, and non-retirement investments DO count and need to be reported. The primary home your parents live in does NOT count (it's excluded). But any additional real estate properties would count as assets. The 2025-2026 FAFSA is definitely different from previous years, but these particular rules about retirement accounts and primary residences haven't changed.
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Gabriel Ruiz
Been dealing with the same issue trying to reach someone at Federal Student Aid to confirm some corrections I made. After getting disconnected 4 times, I finally tried Claimyr.com to connect with an agent. You can see how it works in their video: https://youtu.be/TbC8dZQWYNQ Got through to an actual person in about 15 minutes who confirmed that retirement accounts should NOT be included and that my correction was properly submitted. Saved me hours of redials and frustration!
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Ev Luca
•Oh wow, I didn't know that service existed. I might try that if my correction doesn't process correctly. I've been trying to call them but keep getting disconnected after waiting forever.
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Collins Angel
•is it expensive? seems sketchy to pay just to talk to someone at financial aid
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Gabriel Ruiz
•It was worth every penny to not waste an entire day on hold. And they don't give your personal info to the aid office - they just connect the call. I was skeptical too but it saved me so much frustration.
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Misterclamation Skyblue
THE ENTIRE SYSTEM IS RIGGED!!!!! They DELIBERATELY make the forms confusing so more people make mistakes and get less aid!!!! My cousin works in a financial aid office and told me they LOOK for these mistakes to save money!!!! DONT TRUST THE SYSTEM!!!!!
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Marcelle Drum
•While the FAFSA can certainly be confusing, there's no evidence of deliberate attempts to trick students. Financial aid offices generally want to maximize aid for eligible students - it's actually in their interest to help students receive appropriate funding. The confusion often stems from complex federal regulations rather than malicious intent.
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Misterclamation Skyblue
•That's what they WANT you to believe!!! Why else would they make it SO COMPLICATED?? My cousin has LITERALLY seen aid officers CELEBRATING when they find mistakes that lower peoples aid amounts!!!
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Ev Luca
UPDATE: I successfully submitted my correction to remove the retirement account! The system gave me a confirmation number and everything. According to the site, it should take 3-5 business days to process. I'll update again once I see my new SAI score. Thanks everyone for your help!
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Avery Davis
•Great job! Make sure to keep an eye on your email for confirmation when the correction is processed. You should see your updated SAI fairly quickly. If you've already received aid offers from schools, you might want to email their financial aid offices to let them know you've submitted a correction that will likely change your SAI.
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Tate Jensen
wait so what about a 529 college savings plan? is that considered a retirement account? my dad has one for me with like 12k in it
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Marcelle Drum
•No, 529 plans are NOT retirement accounts - they are education savings accounts. 529 plans DO need to be reported on the FAFSA as a parent asset (assuming your parent owns it). Even though they're reported, parent assets are assessed at a maximum rate of 5.64%, so only a small portion impacts your aid eligibility.
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Ev Luca
FINAL UPDATE: My correction processed! My SAI went down by almost $4,700 after removing the retirement account. That should definitely increase my aid eligibility. So glad I caught this mistake and was able to fix it. If anyone else makes this error, definitely submit a correction ASAP!
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Avery Davis
•That's a significant improvement! Congratulations on getting it fixed. This is exactly why understanding what assets to include (and exclude) on the FAFSA is so important. Thanks for sharing your experience - it will definitely help others who might make the same mistake.
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Lauren Wood
Wow, this is such a helpful thread! I'm working on my FAFSA right now and I was about to include my dad's 403b account. Thank you everyone for clarifying that retirement accounts should NOT be reported - you just saved me from making the same mistake! @Ev Luca so glad you were able to get it fixed and saw such a big improvement in your SAI. The step-by-step correction instructions from @Marcelle Drum are super clear too. This community is amazing!
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