Help...annuities included in CSS assets?

Paying for College
1

<p>Help! </p>

<p>I am trying to fill out the CSS profile because it is required for merit aid that my son is applying for at one college. My question is in regard to annuities: do these get included in parent assets, or not? </p>

<p>The worksheets seem to suggest that an IRA Annuity is definitely not included in the assets, but a non-qualifying annuity should be included. (There is actually a line on the worksheet for non-qualifying annuities.) This is what I assumed until I spoke with a college fin aid counselor at the school in question. She stated that NO annuities should be included as parental assets. I pressed her on this point but she continued to say that no annuities should be included, whether they are IRA ones or non-qualifying ones.</p>

<p>So now I am completely confused.... Do I go with what the fin aid counselor's ruling, or do I do what the worksheet says? I will try to call the college again in the morning to clarify -- the form must go in tomorrow. (I am as bad as the kids with procrastinating!) Meanwhile, does anyone have a clue on this?</p>

2

<p>call the css help line....</p>

3

<p>Annuities are tax qualified products. Test- is if there is a tax penalty for withdrawal before a certain age, typically 59.5 yrs and you pay taxes & penaltiies on the gains prior to that age. </p>

<p>She is correct.</p>

4

<p>It depends on the school. The directions of the CSS profile state that the amounts in retirement plans should not be reported anywhere, but that the contribution for the previous year is. HOWEVER, some schools (Davidson is one) have supplemental questions and they include the value of retirement accounts.</p>

5

<p>Thanks everyone. I did manage to get through to the help desk. They verified that, in the main body of questions, non qualified annuities should be included and IRA's excluded. If the school wants an IRA listing, they apparently get it from the supplemental questions. </p>

<p>I pressed the submit button and my form has gone winging on its way.</p>