joanmcq Posted October 22, 2014 Report Posted October 22, 2014 Client asked if contributing to an IRA is frowned upon by the college aid people. She had read it on the internet while trying to deal with it. If so, is a 401(k) contribution looked at the same way? Clients have twins entering college, sold their rental to help pay for it, but want to sock away some for themselves too. Quote
ILLMAS Posted October 22, 2014 Report Posted October 22, 2014 I think they look at the overall of the parents investment or net worth, here is a short article how it factors into play: http://www.forbes.com/sites/troyonink/2013/02/28/ira-contributions-pay-less-in-tax-but-more-for-college/ Quote
Jack from Ohio Posted October 22, 2014 Report Posted October 22, 2014 Retirement accounts are not included in the calculation for FAFSA. Other investments are. Quote
Philip1117 Posted October 23, 2014 Report Posted October 23, 2014 The game you play is getting your ecpected family contribution as low as possible. Apply to private colleges and it might cost less than the state school if your assets are positioned properly. Phil Quote
Cathy Posted October 23, 2014 Report Posted October 23, 2014 Below is a link to a "paper" FAFSA that can answer any questions you might have. Note the questions on page 2, Section 2. If the student answers "yes" to any of those questions, the parents' income will not be considered. Quote
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