I am trying to complete the CSS Profile and I am really struggling! Hoping someone may be able to help.
Earlier this year I transferred some money out of my California teachers retirement account into an annuity. I feel really foolish, but I honestly didn’t realize it was an annuity. A financial advisor from my teacher’s union recommended this “retirement account” as the best bang for my buck! Anyway, it was opened with pre-tax money, so that would make it a qualified annuity. Does that mean I list it as a retirement account and not an asset? Non-qualified annuities are listed as assets, so I am confused.
I currently have a pension through the Nevada PERS for government employees. I have an account balance, but this is not money I can touch, just what has been contributed in my name to the pot. It will pay out like social security, which I do not pay into. Do I need to list the amount as retirement savings?
I am so worried of doing something wrong and not getting the aid we need. Thanks in advance for your help!
Your transfer of retirement money into an annuity should still be counted as retirement money. It’s okay to transfer from one qualified investment to another. This is common once someone has retired or left a job. I can’t imagine the financial advisor had you cash in the funds, pay the penalty, and move the funds into an unqualified investment. So, I think you can safely say that is retirement money and not list it. Your pension is also retirement, so don’t list that either.
Your annuity is likely still a retirement account. If so, the balance in that account is not considered an asset.
This was done in early 2020? @BelknapPoint am I correct that this would be a rollover? If so, just keep track…because when you complete the 2022-2023 FAFSA you will need to indicate this was a rollover or it will be counted as income.
Your balance in your pension account is also not included as an asset.
Someplace on the Profile, you will need to list the balance amounts in your retirement accounts…that’s a pretty clear question, IIRC.
@thumper1 …thanks for your response. The application asks for retirement and assets. I know the pension is not an asset (like stocks), but do I have to list the amount in my account as retirement funds like I do my husband’s 401K? It’s not money I can actually access.
I don’t know why I am struggling so much with this. I think I am so worried to do something wrong and jeopardize our chance and aid! Thanks again!