FAFSA - just offered 457b, is this better than 401k?

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novillero
Posts: 84
Joined: Tue Nov 05, 2013 11:38 am

FAFSA - just offered 457b, is this better than 401k?

Post by novillero » Thu Feb 13, 2020 8:11 am

Aside from a debate on 401k vs 457b, I am strictly interested in whether the 457b will affect FAFSA. My oldest is getting back her financial aid packages, and we are batting 1000% on getting nothing in aid. When I compare our EFC to the proposed bill... it seems like we should have gotten something!

So the issue is whether the 457 works better for reducing income for FAFSA purposes than the 401k (which doesn’t reduce income at all).

I am not finding any good research on this issue.

Thanks for any help

NotWhoYouThink
Posts: 2865
Joined: Fri Dec 26, 2014 4:19 pm

Re: FAFSA - just offered 457b, is this better than 401k?

Post by NotWhoYouThink » Thu Feb 13, 2020 8:18 am

No, it doesn't. In either case you are spending money on retirement accounts that you should be spending for college, so FAFSA counts both the same way.

There isn't much financial aid out there, even if your EFC is zero.

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