<p>Money in a IRA, Pension is not counted because these funds can not normally be accessed with penalty and taxes. Because of the taxes and penalties, it makes no sense to count it towards assets. </p>
<p>FAFSA does look to see how much and when you contribute to retirement. It is generally thought that if you can fund your retirement, then you can sacrifice a few years of contributions to help fund your child’s education. </p>
<p>Look at FAFSA as your friend, who wants to know why you want to borrow money or be given money gratis, when you are living good life. Its not a problem if you are living responsibly and look out for the welfare of your family . Would you loan or give money to a stranger who just bought a Mercedes and a new home and has a second home in the mountains and takes a cruise every year, and pleas, I have no money, I can prove it. Look at my bank balance!.</p>