Converting to Roth -- College Financial Aid

I planned to convert at least $10,000 from SEP-IRA to a Roth this year. However, I'd like to keep the income as low as possible because we might qualify for some more college financial aid. Ideally, the college would understand that the conversion is just shifting retirement money around. On the other hand, they may not.

Any thoughts?

[yakers]

I have read conflicting advice on this on the web. In theory a Roth conversion should not count as "real" income. However I would check with your specific college financial aid office. The reason for this is that private colleges can do whatever they like. They can expect you to use Roth funds for college costs and even made a cooworker take out a home mortage on a mortgage free house for his son to attend CALTECH. I also assume that each state has its own rules for state schools.

[cute fuzzy bunny]

Someone asked this once before, I think the answer was that it didnt count as income to the financial aid folks, but you had to explain it with a separate letter.

Well, I'm not sure I can trust them to get it right. I'll probably wait until next year.

[cute fuzzy bunny]

Besides, you convert stuff to roths, and the minute you want the money they'll change to a national sales tax. I'm building new IRA money into roths, but the old money is gonna stay where it is for now.