Are IRA rollovers from a Traditional to a ROTH, NOT included in income on the FAFSA? If you have an up to date link that would be helpful.
Answer found. I should have called this a ROTH conversation NOT a “rollover”.
https://www.goodfinancialcents.com/does-a-roth-ira-conversion-affect-financial-aid/
an IRA distribution such as you propose is taxable income, so I cannot believe that it is not considered income for FAFSA.
Since this this money was moved out of a tax deferred account, I believe it’s income.
Huh? The article that OP linked to says that a traditional to Roth IRA conversion is a taxable event that needs to be reported on FAFSA, since the amount converted will be included in AGI.
@BelknapPoint all those double negatives in that post. I think the poster agrees with you.
This type of conversion is income for FAFSA and PROFILE purposes.
It is reportable income, but it’s already in the AGI. It is also possible that “maybe “ a school might choose to remove the conversion amount from the AGI & decrease the amount of taxes paid accordingly (since you didn’t actually “get”the money) - they might say no, but it’s worth asking for a professional judgment review.
If you paid after tax funds into an IRA & immediately converted it to a Roth, you don’t report that as income.