<p>Hello everyone this is my first post on the boards and I had a question regarding the fafsa. I will be filling it out in a few days and estimating most of the tax information (will adjust once taxes complete). I'm a dependent and am wondering if my parents retirement savings are in mutual funds (not IRA or 401k) ,do I have to record that in their net worth. It seems this would skew the EFC because these funds will only be available upon retirement and can't go towards college cost. any input is appreciated.</p>
<p>If your parents have their money in RETIREMENT accounts like IRA, TSA, 401k, 403b, or authorized retirement accounts, they are not counted as assets.</p>
<p>If your parents have chosen to put this money in regular savings, mutual funds, or other accounts that are NOT authorized retirement accounts, they MUST be listed on your financial aid application forms as assets.</p>
<p>Thumper is correct.</p>
<p>Certain assets do not have to be reported on FAFSA - these include the primary home and official retirement accounts such as IRAs and 401Ks. Other assets must be reported. This included mutual funds and any other regular investment accounts that are not official retirement accounts (i.e. merely saying they are intended for retirement does not make them protected assets).</p>
<p>Otherwise everyone would say all their savings/investments are for retirement.</p>
<p>Why won’t those funds be available until retirement? Non IRA/401k funds can be tapped penalty free at any time. Mutual funds are a type of investment, IRAs/401ks are a type of account. It doesn’t matter what type of investment, it matters what type of account. IRAs/401ks can be invested in mutual funds. Double check with your parents as to what kind of accounts hold the mutual funds.</p>