Originally Posted by 22B
Originally Posted by intparent
They aren't included for the means test, but then they also aren't available to pay tuition.
What exactly are you referring to here?
Not included in the means test = FAFSA pretends you do not have this money, it is not considered in the calculation of your Estimated Family Contribution (EFC). Means = financial resources or assets

Not available to pay tuition = Withdrawals from 401K accounts are typically not allowed until age 59-1/2. Withdrawing from 401K accounts early typically incurs a hefty penalty. When 401K funds are withdrawn to make them available to pay tuition, the amount of the withdrawal is taxable income, and is used in calculating the EFC.