Does PHEAA use retirement contributions as untaxed income when determining State Grant eligibility?
Yes. You must report all current sources of untaxed income, including tax-deferred contributions to retirement plans or deferred annuity contributions, whether they are voluntary or involuntary. If only contributions to voluntary plans—SEP (Simplified Employee Pension), SIMPLE (Savings Incentive Match Plan for Employees of Small Employers), Keogh, IRAs (individual retirement accounts), etc.—were to be considered when determining State Grant eligibility, families who must establish their own retirement plans would have a disadvantage compared to those who have retirement plans through an employer. Using your family’s total taxed and untaxed income ensures we process requests for State Grant assistance on a uniform basis. Your eligibility for a State Grant is also determined with consideration to: • Available funding • The expected contribution from family income and assets • Aid from the Federal Pell program • Your allowable educational costs We do not consider any prior contributions t
Related Questions
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