Roth Conversion and College Financial Aid

[TromboneAl]

I'd like to do a Roth conversion this year, but I'm concerned that the college will somehow treat it as higher income, and give less financial aid. Alternative is to wait 'til college is over and do it then.

What do you think?

 

[Nords]

I'd like to do a Roth conversion this year, but I'm concerned that the college will somehow treat it as higher income, and give less financial aid.

I agree-- they'll use it against you. After all the IRS treats it as higher income, too.

You could call the college and ask to see the rules in writing, but I'd hesitate to do a Roth IRA conversion in the year before filling out a FAFSA and for all the college years.

 

[TromboneAl]

Yes, I think you're right. I'll have plenty of time to do the conversions after she graduates.