FAFSA/CSS: Required Distributions from Retirement Account

<p>I inherited part of my dad's retirement account when he died. I <em>think</em> the account is now a retirement account of some sort (maybe a decedent IRA, if that's the right term), but I'm required to take an annual distribution every year. I am taxed on the distributions, and I am not retired myself.</p>

<p>Am I right that I should NOT report the account as an asset on the FAFSA, because it is a retirement account?</p>

<p>What about on the CSS?</p>

<p>
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Am I right that I should NOT report the account as an asset on the FAFSA, because it is a retirement account?

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</p>

<p>I believe it's like ANY other retirement account (assuming this IS a retirement account and not just a savings). I inherited my mom's TSA. She was taking a minimum distribution because she was required to do so. That continued for ME when I inherited the account. It is required that I INCLUDE the distribution I receive once a year (about $1000 and I get a tax form for this from the retirement company). But the principal is in a TSA so is not reported on the FAFSA as an asset.</p>

<p>Some Profile schools DO ask for the value of your retirement accounts. If that is the case, you will need to list this account along with any other retirement accounts you receive.</p>

<p>If it stays as a retirement account you don't have to report the balance. You will have to report the distributions as income though.</p>

<p>Thanks much!</p>