I’m currently in college right now, and I’ve recently saved enough money to start a Roth IRA. Does anyone know if adding money into my own IRA account would decrease my financial aid?
Roth IRA contribution does not impacting your financial aid; however, Roth IRA distribution might.
If anything, adding money to a Roth IRA will increase financial aid, as it will move assets from reportable for financial aid to not reportable. This assumes that instead of putting the money in a Roth IRA, it will be in a regular bank account, invested in a non-qualified investment or held in cash. If you spend it instead of putting it in a Roth IRA, it’s a wash.
@4kidsdad What is a roth IRA distribution?
Taking money out of a Roth IRA and not rolling it over.