<p>Thanks swimcatsmom. We have a fair amount in retirement savings Roth IRA, pension and company matching - my understanding was that those assests are not counted. Is that true? Thanks again.</p>
<p>IRAs and 401ks are not reportable assets for FAFSA.</p>
<p>Life Insurance either</p>
<p>IRAs and 401ks are not reportable assets for FAFSA. </p>
<p>Someone mentioned IRA contribution is included in the FAFSA income but Roth contribution is not?? </p>
<p>Can someone clarify this? that means IRA contributions for the previous years becomes non reportable assests?</p>
<p>Pre-tax 401k contributions and traditional IRA contributions for which you take a deduction on the 1040 reduce AGI. So they are added back in. It’s considered a choice to contribute to retirement rather than fund education. Roth IRA and 401k contributions are after tax so don’t reduce AGI. Neither do traditional IRA contributions if you don’t take the IRA deduction.</p>
<p>Yes, in the years following an added back-in contribution, that amount is just part of a non-reportable asset.</p>
<p>When you do the FAFSA for 2013-2014, you’re using 2012 tax returns. If you have IRA deduction in the year 2012, you need to report the deduction on the FAFSA and it would add the deduction back to your income.</p>
<p>Other years’ deduction are not report on the FAFSA.</p>
<p>Bella, when your report your income for 2012, for example, that income includes the amount you subtracted out for tax purposed as an IRA contribution. Though the IRS exempts that amount for tax purposes, FAFSA does not. Once the contribution is in an IRA or 401K or other such account, it is not counted as assets when you have to list assets on FAFSA. You do have to report such accounts on most if not all PROFILE forms, but they are usually not taken into account. So, yes, IRA contributions for previous years become non reportable assets. You just cannot reduce a year’s reported FAFSA income by contributions to your pension or other such plan. They reduce your taxable income; not your FAFSA income.</p>
<p>It seems like every two years someone revives this thread. I would suggest a NEW thread…when this one started a LONG time ago, Net Price Calculators were not available on each college website, for example.</p>
<p>Closing old thread.</p>