""Yes, in your situation, just as the one recently about health insurance, completely right that what a traditional 401(k) or a traditional IRA or both, what they do is they bring down your income enough, in many cases, below thresholds where other benefits accrue to you that you would lose if you were listening to the man from Roth, which is who I am, and just doing that automatically. There can be exceptions.""
""A wave of elite universities has converged on $200,000 household income as the threshold for free or near-free tuition. Harvard, MIT, and Penn have all expanded their aid policies to eliminate tuition for families at or below that level, and Yale announced in January 2026 that it would do the same beginning in fall 2026.""
Steve from Pennsylvania earns $200,000 annually and is redirecting retirement contributions to traditional accounts to lower his Adjusted Gross Income. This strategy aims to qualify for free or reduced tuition at elite universities like Harvard, MIT, and Yale, which have set $200,000 as the income threshold for financial aid. By lowering his AGI, Steve can avoid significant tuition costs, potentially saving over $240,000 for four years of college. The trend among these universities is growing, with Yale set to join in 2026.
#tuition-assistance #financial-aid #adjusted-gross-income #retirement-contributions #elite-universities
Read at 24/7 Wall St.
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