<p>Am new to this forum, trying to see if anyone knows how premature IRA distributions affect financial aid packages? Thanks</p>
<p>I am the beneficiary of an IRA and the distributions I get annually are treated as income. Therefore it increases my expected family contribution on FAFSA and CSS. This in turn reduces the size of the FA package.</p>
<p>I don’t know how a premature distribution is reported on a tax return or if any adjustments are made to the income reported based on whether a 10% penalty applies or if the fund came from a Roth IRA.</p>