<p>Will having a traditional IRA have an impact on how much my EC will be for when my son goes to college next year? I'm pretty sure it will. However, a previous company that I worked for many eyars ago is closing completely and will send my my pension benefits in either a lump-sum payout (less taxes and fees) or will deposit them into an IRA...What should I do as I need my contribution to my son's college expenses to be kept as low as possible.</p>
<p>IRA rollover (incl. pension to IRA) - no impact to your EFC</p>
<p>Trad. IRA contribution - add back to your income, increasing your EFC</p>
<p>Money already in retirement accounts is invisible to the FAFSA. Money that you deposit each year into retirement accounts is added back into your income for that year for the FAFSA. Have that retirement money rolled over directly into your IRA and it won’t show on the FAFSA. However, if you take it as a payout, it will show as income for the FAFSA, which is not good at all!</p>
<p>Each college and university that uses the CSS Profile adjusts the formula as it sees fit. If your son applies to any of those places, run the Net Price Calculator at its website to get a feel for how the numbers will work out.</p>