<p>Will having assets in my Roth IRA increase my student contribution for college?</p>
<p>I will be on financial need next year, and I want to know if I should just spend my money now, or save it, knowing that those assets will be protected.</p>
<p>The money you contribute in the tax year you are filing FAFSA for (i.e. 2007 tax year for 2008/2009 school year) is not protected under the FAFSA formula. While the balance in the IRA is protected and is not reported as an asset any contributions from 2007 income will still be reported as income.</p>
<p>Thank you!</p>
<p>Swimcatsmom</p>
<p>I know that the FAFSA does not consider assets in a student's Roth IRA. What about schools that use the Profile?</p>
<p>Fresnomom - I'm sorry but I don't know about how profile schools treat IRAs. From what I have read about profile schools on CC it probably varies according to the school.</p>