<p>My E Jones guy said it could. Wanted to know from the CC if this is true. E Jones said to use the5329 tax form.</p>
<p>I believe so. It is one exceptions to the penalty for early withdrawals. </p>
<p><a href="http://www.irs.gov/pub/irs-pdf/p970.pdf%5B/url%5D">http://www.irs.gov/pub/irs-pdf/p970.pdf</a></p>
<p>Page 58.</p>
<p>thanks. one more question then pops up: does the FA office of a college look at IRAs as a source of assets when determining EFC?</p>
<p>For FAFSA an IRA is not a reportable asset. Nor is the primary home.</p>
<p>For CSS IRAs and primary homes must be reported as assets. How the the schools that require CSS use the information varies and is something you would have to check with each school.</p>
<p>You still have to pay income tax on the IRA even if you may not have to pay the 10% penalty.</p>
<p>It depends on the type of IRA and whether or not the initial contributions were tax deferred.</p>
<p>If its a Roth IRA you only pay taxes on the earnings, I think. It might be worth it to convert to a Roth IRA while the market is down - potentially less taxes for the conversion. You still have to pay taxes on future earnings when you liquidate it for college. (Obviously, check out all CC financial advice with your own fin planner/tax guy)</p>
<p>So is a student Roth IRA a "non-education IRA" on CSS Profile (report in SA-105)?</p>
<p>What about a parent Roth IRA? I don't see any place that it needs to be reported. PD-175 and PD-270 only ask about "tax-deferred" retirement accounts.</p>