My wife and I were feeling pretty good about accomplishing ER in six years when our two kids finish college, but we're now having second thoughts since we got the results back from our first childs FAFSA application for college.
I was surprised to find that the FAFSA application requires the amount of our tax-deferred 401k money be added back into our adjusted gross income for its calculation! I guess FAFSA figures such money could be used for college expenses (which I guess technically it can).
Our 401k money added to our adjusted gross income increases our EFC to 36927 which has us picking up the entire college tab and decreasing our future 401k contributions!
I suspect some may say that's how the numbers fall so deal with it, but does anyone have any advice for our latest discouragement?
On another note (if you don't mind), if you've sent kids to college, do you have any financing ideas? Ideally my wife and I would like to limit our contributions to half the expenses.
Thanks.
I was surprised to find that the FAFSA application requires the amount of our tax-deferred 401k money be added back into our adjusted gross income for its calculation! I guess FAFSA figures such money could be used for college expenses (which I guess technically it can).
Our 401k money added to our adjusted gross income increases our EFC to 36927 which has us picking up the entire college tab and decreasing our future 401k contributions!
I suspect some may say that's how the numbers fall so deal with it, but does anyone have any advice for our latest discouragement?
On another note (if you don't mind), if you've sent kids to college, do you have any financing ideas? Ideally my wife and I would like to limit our contributions to half the expenses.
Thanks.