<p>Any one have any experience with rolling traditional IRA $ into a Roth? Is the treament of that "income consistent or a school by school determination?</p>
<p>It will show up on your taxes, and consequently reflected unto the FAFSA. How close the FA people look at the raw numbers could be anyone's guess. </p>
<p>We did a rollover when the market was at its peak. Paid a lot in taxes for three years, and saw the rollover value tank. The market is again at a high level, the time to make a rollover based on today's taxes is when the market is low. </p>
<p>You need to make careful analysis with whom ever you consult.</p>
<p>Good point about the market value, toomuch!</p>
<p>Why not just keep your IRA and start up a Roth? It will take a while to recover the tax hit on rolling out your IRA to convert to a Roth. How long would it take to make up the income tax and penalty tax in the new Roth? You might be going backwards for several years. Just open a new Roth and fund it, instead of the IRA or fund both. </p>
<p>The old story was do an IRA because you'll be in a lower tax bracket in retirement. The Roth story is pay taxes now because you'll never be in a lower bracket and the outcome is tax free. But in reality, who knows? Just try and figure if you need the help on taxes now or later or both. There isn't a right answer, just what fits your situation.</p>