Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Converting to Roth -- College Financial Aid
Old 06-30-2005, 10:22 AM   #1
 
Posts: n/a
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?
__________________
  Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Converting to Roth -- College Financial Aid
Old 06-30-2005, 10:30 AM   #2
Thinks s/he gets paid by the post
 
Join Date: Jul 2003
Location: Pasadena CA
Posts: 2,695
Re: Converting to Roth -- College Financial Aid

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.
__________________

__________________
T.S. Eliot:
Old men ought to be explorers
yakers is offline   Reply With Quote
Re: Converting to Roth -- College Financial Aid
Old 06-30-2005, 03:56 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: Converting to Roth -- College Financial Aid

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.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Re: Converting to Roth -- College Financial Aid
Old 06-30-2005, 04:09 PM   #4
 
Posts: n/a
Re: Converting to Roth -- College Financial Aid

Well, I'm not sure I can trust them to get it right. I'll probably wait until next year.
__________________
  Reply With Quote
Re: Converting to Roth -- College Financial Aid
Old 06-30-2005, 04:26 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: Converting to Roth -- College Financial Aid

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.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Help with Financial Aid Decision TromboneAl Other topics 31 05-20-2007 02:10 PM
Converting Traditional IRA to Roth IRA piranha Young Dreamers 4 04-14-2007 08:39 AM
College Savings/Aid Update TromboneAl Other topics 10 07-07-2006 09:45 PM
College Costs While ER'd Papi FIRE and Money 29 04-14-2006 09:16 PM
College / financial aid farmerEd FIRE and Money 33 01-28-2004 03:16 PM

 

 
All times are GMT -6. The time now is 04:53 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.