Welcome to College Confidential!

The leading college-bound community on the web

Sign Up For Free

Join for FREE, and start talking with other members, weighing in on community polls, and more.

Also, by registering and logging in you'll see fewer ads and pesky welcome messages (like this one!)

As a CC member, you can:

Help Naviance, a relative of College Confidential, fine-tune a design. You could receive a $10 gift card to Amazon. Start here: https://ethn.io/67193

IRA and the FAFSA

AllthemuffinsAllthemuffins Posts: 1Registered User New Member
I'm going to be applying for the Washington State College Bound scholarship, and I had a few questions about what is regarded as income. My sister is attending a private college with a lot of grants and loans, and my mother is attending a public university part time to finish up her masters. Neither of my parents are 59 1/2 (57 and 55) but they are using their IRA.

Will the FAFSA count IRA withdrawals as part of my parents' income?
Post edited by Allthemuffins on

Replies to: IRA and the FAFSA

  • thumper1thumper1 Posts: 50,625Registered User Senior Member
    Any withdrawals from an IRA are income for financial aid purposes regardless of the age of your parents.
  • mazewanderermazewanderer Posts: 1,399Registered User Senior Member
    Is it a regular or ROTH IRA. While thumper1 may be right, you may want to check what portion of the distribution is considered as income. For example, a ROTH IRA is penalty free if you used for educational purposes and you pay the tax only on the gains, not on the principal. Again, not a tax expert, but it appears that the interest will definitely count as income as you pay tax on it. I am not sure if the return of the principal will count.
Sign In or Register to comment.