<p>Roth IRA contributions are not tax deductible, while regular IRA contributions are. The amount of the tax-deductible IRA contribution is added back in as income for FAFSA. Regardless of when the tax-deductible contribution is made, if it’s for the 2011 tax year it will appear on your 2011 tax form and so will be reportable. So while you can make IRA contributions for the prior year up until April of the following year, I don’t see how that would matter for deductible contributions.</p>
<p>For Roth IRA contributions, if you don’t have the cash to make the contribution until after the tax year, then I could see how moving that cash from a savings account to a Roth IRA might be advantageous. For example, if you have an extra $5000 in January of 2012 and want to designate that as a 2011 Roth IRA contribution, assuming you make the contribution prior to filing your 2011 FAFSA, that will protect the $5000. If you keep the $5000 in savings until after you file FAFSA, then you’d report it as a parent asset.</p>
<p>Timing seems to be everything :)</p>
<p>[FinAid</a> | Saving for College | Retirement Plans](<a href=“Your Guide for College Financial Aid - Finaid”>Retirement Plans and Saving for College - Finaid)</p>
<p>Roth limits are $6000/year for those 50 and above; $5000/year for those under 50.</p>