Using MEC to shelter assets, pay for college

thumper1
Wed, 21 Jul 2021 21:15:53 +0000

Right….so for the contributions are added in s income for the tax year of the FAFSA being completed.

But also keep in mind, those retirement contributions aren’t completely liquid assets. In many cases, there is a penalty for withdrawing early, and if tax deferred, taxes will be owed on money withdrawn. So make sure you read the fine print if you plan to “shelter” money in retirement accounts…which are meant as long term retirement accounts, not a drop box to hide money from the financial aid departments.