Under the Parent Detail section of the CSS profile, it asks which Retirement plans I participate in. I do have a traditional IRA, but I am not currently contributing to it. Should I still check that box? I know that I have to report the value of it at the bottom of that section. I just wasn’t sure if by “particpate” they meant actively contributing.
Also, where do I put the current value of my Roth IRA on the CSS Profile? It is not tax-deferred, so I was thinking I shouldn’t add it to the “Current value of tax-deferred retirement, pension, annuity, and savings plans” line, but I don’t know where else I should include it.
The only Profile I have to reference is from several years ago, and that version had a question that said “The parent has an IRA, Keough, or other tax-deferred retirement plan.” If you have a Roth IRA, that would require a yes answer for this question, in my opinion. (And on this older version, it was a “Yes,” and not a check mark.) So no, a Roth IRA would not be “other type of retirement plan,” based on what I know from the wording on the older version.
Mine has the question that says “The parent has an IRA, Keough, or other tax-deferred retirement plan.” I am thinking I shouldn’t check that box because the Roth IRA is not tax-deferred like an IRA and Keough are.
I wish they would make things more clear. I even called the College Board help line today and the person I spoke to didn’t know. She put me on hold to check, but it was obvious to me that she was confused about if/where to include it, so I am hesitant to even follow her instructions.
Tax-deferred doesn’t mean initially deductible. It means no current tax on the earnings. While I agree that there’s some uncertainty, I lean towards the interpretation that a Roth, in this context, is merely another flavor of IRA, like a SEP or SIMPLE.
Every Roth IRA is an IRA, even though not every IRA is a Roth IRA.
I think @kelsmom may be needed on this one.
If the question is meant to identify contributions that reduced your AGI (and are to be added back in by the formulas,) the Roth contribution is already in your AGI, as it’s contributed from after-tax dollars. I believe, in this case, tax deferred refers to contributions made pre-tax.
This. If it asks about IRAs and doesn’t specify what kind of IRA, then it’s asking about every kind of IRA, including a Roth IRA. Try not to overthink this.