<p>Where are sibling retrement accounts (Roth IRA's) reported on the CSS profile?</p>
<p>Are they reported? I don’t think so.</p>
<p>Retirement accounts for student and parents are reported on the Profile, not sibs.</p>
<p>Are you sure it is a retirement account? Those must be funded with earned income (although there are some transferred accounts) so are your siblings EARNING income to fund retirement accounts? If so, are they still dependents?</p>
<p>They could be retirement accounts. I had my kids open Roths as soon as they had earned income at age 15 or 16. They were still dependents.</p>
<p>Yes, they are retirement accounts. I was planning early and have placed most all assets in retirement accounts, 401K for my wife and I, Roth IRA’s for my three kids. I have run a small home biz for the last 14 or so years. I was positioning assets for the FASFA form. I only recently found the CSS looks at retirement assets, although each college FA office decides how the fit into the EFC calculations. Seems most see it as one less hardship for a parents not having to fund a healthy/established retirement accounts. Seems they will require the student to tap into there own retirement accounts (Roth IRA’s). </p>
<p>Anyone with direct experience with how specific colleges look at the retirement accounts both parental and student? </p>
<p>They ASK for information about balances in parent and student retirement accounts, but that does not mean they expect folks to make withdrawals from those accounts. It is thought that they are looking for folks who have very excessive retirement accounts that don’t align with their incomes. In other words, if a family had a million dollars in retirement accounts but only a $50,000 annual income, it could raise some questions about additional income possibilities.</p>
<p>I have never heard that a college required money be withdrawn from retirement accounts. Even a Roth has a penalty for doing so (although I think you can borrow against it).</p>
<p>As long as your student has sufficient income to,support those IRSs, then no problem. But if her contributions are more than income…oops…I don’t think you can do that even with a Roth.</p>
<p>Actually all Roth IRA funding was done with w-2 income. As for 401ks, wife and I have been saving for nearly 30 years. Combined 401ks have grown nicely. Our family income has seen dramatic decreases so the scenario you are presenting is fairly accurate. You have settled my concern that FA may require the student to tap those retirement asserts. I googled and found a paragraph about a school policy requiring the student to count 50% of there retirement accounts as part of the usable assets. I guess it is a case by case and school by school policy.</p>
<p>Side note: I asked my bank when I can open an IRA for my kids and they said when they were 18, and contributions can’t be more than what they earn. I guess that wouldn’t be a “Roth” …?</p>
<p>A Roth just means that the tax was paid on the amount contributed before it was put into the IRA. A ‘regular’ IRA usually means pre-tax funds were used, or a tax credit taken, and thus the tax needs to be paid when the money it is withdrawn.</p>
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<p>That may be your bank’s policy, but there is no IRS or statutory prohibition regarding an IRA for a minor. If you want to open an IRA for your kid, go somewhere else (lots of financial service companies allow IRAs for minors).</p>
<p>^^ As long the kids have earned income, they can open a Roth and contribute as much as the earned income. However, not every bank and brokerage will open one for you. I know ETrade opens Roth for minors, but not Fidelity.</p>
<p>Vanguard will open a Roth for minors as well.</p>
<p>TD Ameritrade. They were also one of the first to have solo 401K’s back in 2002.</p>