Does PHEAA use retirement contributions as untaxed income when determining 2010–2011 State Grant eligibility?
The 2010–2011 Pennsylvania State Grant Program and federal financial aid programs require that families report all current sources of untaxed income, including tax sheltered contributions to retirement plans or deferred annuity contributions, whether they are voluntary or involuntary. It is felt that applicants from families making voluntary contributions to retirement plans, in addition to mandatory contributions, would receive an unfair advantage, because those applications would then be considered on a lower family income than applications from other students where the families were not contributing to voluntary retirement plans. On the other hand, in certain cases a voluntary contribution to a retirement plan may be as critical to a family’s retirement as a mandatory contribution. For example, some families absolutely need to supplement either minimal work-related retirement plans or, in the case of self-employed individuals, must establish their own retirement plans. Therefore, to
The 2010–2011 Pennsylvania State Grant Program and federal financial aid programs require that families report all current sources of untaxed income, including tax deferred contributions to retirement plans or deferred annuity contributions, whether they are voluntary or involuntary. It is felt that applicants from families making voluntary contributions to retirement plans, in addition to mandatory contributions, would receive an unfair advantage, because those applications would then be considered on a lower family income than applications from other students where the families were not contributing to voluntary retirement plans. On the other hand, in certain cases a voluntary contribution to a retirement plan may be as critical to a family’s retirement as a mandatory contribution. For example, some families absolutely need to supplement either minimal work-related retirement plans or, in the case of self-employed individuals, must establish their own retirement plans. Therefore, to
Related Questions
- Does HPRP financial assistance count as income for participants for the purpose of determining eligibility under other state and Federal benefit programs?
- Does the Agency use retirement contributions as untaxed income when determining 2009-10 State Grant eligibility?
- Does PHEAA use retirement contributions as untaxed income when determining State Grant eligibility?
