<p>I want to transfer $5000 from my savings account to Roth CD. Will the CD be considered as income when applying for FAFSA.</p>
<p>Are you referring to a Roth IRA that is invested in a CD? You can only contribute to a Roth IRA to the extent that you have earned income. If your earned income in 2010 was over $5000, then you can invest $5000 (the maximum for 2010) in a Roth IRA. This investment will not be considered either income or an asset when filing your FAFSA.</p>
<p>The Roth would not be considered as an asset. However if you have the income of $5000 that you need to be able to contribute $5000 to a Roth then that income will still be treated as income by FAFSA.</p>