Do IRA accounts count as assets on FAFSA vs CSS Profile?

Good news on the FAFSA front - retirement accounts (including traditional and Roth IRAs) are NOT reported as assets on the FAFSA. The federal methodology specifically excludes all retirement plans from asset calculations when determining your SAI (Student Aid Index). However, CSS Profile is a different story. The CSS Profile generally does ask about retirement accounts, though they typically don't count the full value. Many schools using CSS will count a portion of retirement assets (often excluding the first $50,000-$100,000, then counting some percentage of the remainder). Each school has its own formula for how they treat retirement assets in their institutional methodology.

my daughter applied to 6 schools last year and NONE of the private ones counted our IRA's on the CSS! they looked at our investment property tho which FAFSA didn't... each school has there own formula

As someone who just finished this process last year, I can tell you it's confusing as heck! On FAFSA, no retirement accounts are reported as assets - your IRAs (both types) are completely invisible. CSS Profile does ask about retirement accounts but honestly it depends on the school how much they'll count. For my son, the three private colleges all treated our retirement accounts differently: - One ignored them completely (like FAFSA) - One counted 5% of anything over $150k - One wanted to know our balances but said they only factored them in if they were "unusually large" (whatever that means) It's SO frustrating how inconsistent they all are!!! Good luck with it all!

FAFSA is going to ruin me!!! I've been on hold with them for 2 HOURS trying to get answers about this exact question! Their website says one thing, my kid's counselor says another thing, and I can't even get a human to explain it to me! How is anyone supposed to figure this out when you can't even reach a real person?? And don't even get me started on the CSS profile - they want to know EVERYTHING including what I had for breakfast! 😡

The new FAFSA for 2025-2026 is totally different from previous years just FYI. But retirement accounts are still not counted as assets. You will need to report your AGI from your 2023 tax return (they use the "prior-prior year"). IRAs aren't included in the asset section but if you made contributions to them in 2023 those will show up in your AGI and untaxed income sections.

somebody told me if u withdraw from your ira the year before fafsa it can mess up your aid a lot even tho the accounts dont count as assets!!

Thank you all for the helpful responses! Just to summarize what I've learned: 1. FAFSA: IRAs (both traditional and Roth) are NOT counted as assets 2. CSS Profile: They ask about retirement accounts but each school treats them differently - some ignore them, some count a percentage of larger balances 3. Withdrawals from IRAs can affect FAFSA by increasing reported income even though the accounts themselves aren't counted 4. Contributions to IRAs affect the income side of FAFSA calculations I'll be reaching out to each private school individually to ask about their specific policies. This forum has been super helpful!

Great summary! One additional tip that helped us - when contacting the financial aid offices at private schools, ask them specifically if they have a "retirement asset protection allowance" and what their threshold is. Some schools will tell you upfront something like "we don't count the first $200k in retirement assets" or "we only assess 2.5% of retirement assets above $100k." Getting these specifics in writing (email) can help you estimate your expected contribution more accurately and plan accordingly. Also, if you have kids going to college back-to-back like you mentioned, some schools will adjust their methodology when you have multiple kids in college simultaneously - definitely worth asking about!

Just wanted to add something that might help with the CSS Profile confusion - many schools that use CSS actually publish their financial aid methodology online if you dig around their financial aid websites. Look for documents called "institutional methodology" or "financial aid policy." For example, some Ivy League schools explicitly state they don't count retirement assets at all, while others like certain liberal arts colleges will count a small percentage above a certain threshold. MIT, for instance, publishes that they exclude home equity and retirement assets entirely from their calculations. Also, if you're worried about the asset assessment, remember that parent assets are typically assessed at around 5.64% maximum on FAFSA (after asset protection allowances), so even if a school counted some of your retirement savings, it wouldn't be dollar-for-dollar against your aid. The income side of the equation usually has much more impact than assets anyway. Good luck with both kids - the overlap years should definitely help with your Expected Family Contribution!

As a newcomer to this whole FAFSA/CSS Profile process, I just wanted to say how incredibly helpful this thread has been! I'm in a similar situation with retirement savings and was panicking about how it would affect my daughter's financial aid prospects. The distinction between FAFSA (doesn't count IRAs as assets) vs CSS Profile (varies by school) is so important to understand. I especially appreciate the advice about contacting schools directly and asking for their specific retirement asset policies in writing - that's such a practical tip that I never would have thought of. One follow-up question: for those of you who have been through this process, how far in advance did you start researching each school's financial aid policies? I'm wondering if I should be doing this research before my daughter even finalizes her college list, or if it's something to tackle after she gets accepted. The back-to-back college timeline is stressful enough without trying to decode all these different methodologies! Thanks to everyone who shared their experiences - this community is a lifesaver for confused parents like me!

As a newcomer to this process, I'm finding this thread incredibly valuable! I'm in a similar boat with substantial IRA savings and two kids who will be in college simultaneously for a couple years. One thing I'm curious about that hasn't been mentioned yet - does anyone know if the timing of when you complete the CSS Profile matters? I've heard some schools have limited financial aid budgets and award on a first-come, first-served basis. If that's true, it seems like getting those institutional methodology details early (like the great advice about asking for retirement asset policies in writing) could be even more important for planning purposes. Also, for those who have navigated this with multiple kids - did you find that schools were consistent in how they treated your family's financial situation from year to year, or did the calculations change significantly? I'm trying to figure out if I can reasonably predict costs for my younger child based on what happens with my older one at the same institutions. The overlap years can't come soon enough from a financial aid perspective! Thanks to everyone sharing their real experiences - it's so much more helpful than the generic advice you find on most financial aid websites.

As someone who's just beginning to navigate this process, I'm incredibly grateful for all the detailed information shared here! I have two kids who will be going to college within the next few years, and the retirement asset question has been keeping me up at night. Reading through everyone's experiences, it sounds like the key takeaways are: FAFSA completely ignores IRA balances (huge relief!), but CSS Profile schools each have their own rules. The advice about getting specific policies in writing from each school is brilliant - I never would have thought to ask for actual thresholds and percentages upfront. One question I haven't seen addressed: has anyone dealt with schools that changed their institutional methodology between when you applied and when your second child applied? I'm wondering if these policies are stable enough to rely on for multi-year planning, or if schools frequently adjust how they treat retirement assets. Also, for those mentioning the Net Price Calculators - do any of them actually ask about retirement account balances, or do they all follow the FAFSA model of ignoring them? I've been running estimates but wasn't sure if I should factor in our IRA balances somehow. Thanks again to everyone who's shared their real-world experience - it's infinitely more valuable than the generic advice you find elsewhere!

As a newcomer to this community and the college financial aid process, I can't express how valuable this thread has been! I'm in a very similar situation with significant IRA savings and feeling overwhelmed about how it might impact my son's financial aid eligibility. The clarification that FAFSA completely excludes retirement accounts as assets is such a relief - I had been losing sleep thinking our $200k+ in various IRA accounts would disqualify us from any federal aid. But the CSS Profile complexity is still daunting. The advice about contacting each school directly and asking for their specific retirement asset policies in writing is absolutely brilliant and something I never would have considered. One thing I'm wondering about that I haven't seen discussed much - for schools that do count some percentage of retirement assets, do they typically look at the total across all retirement account types (traditional IRA, Roth IRA, 401k, etc.) or do they treat different account types differently? We have assets spread across several different retirement vehicles and I'm curious if that matters for CSS Profile calculations. Also, has anyone found that financial aid officers are generally receptive to these detailed policy questions, or do they sometimes get annoyed by parents trying to game the system? I want to be strategic but don't want to come across as pushy. Thanks to everyone for sharing such practical, real-world advice - it's exactly what confused parents like me need!

As a newcomer to this process, I'm incredibly grateful for this detailed discussion! I'm facing a similar situation with retirement savings and multiple kids heading to college. One aspect I haven't seen mentioned yet is the impact of Required Minimum Distributions (RMDs) for older parents. My spouse will turn 73 during our younger child's college years, which means we'll have mandatory IRA withdrawals that will show up as income on FAFSA even though we don't actually need that money for living expenses. Has anyone dealt with this situation? I'm wondering if there are any strategies to minimize the impact of RMDs on financial aid calculations, or if schools using CSS Profile take into account that these withdrawals aren't discretionary income. It seems like the timing of when you have kids really affects how retirement planning intersects with college costs! Also echoing everyone else's appreciation for the advice about getting school policies in writing - that's such a practical tip that I never would have thought of. This thread has been more helpful than hours of searching financial aid websites!

As a newcomer to this community, I'm finding this thread absolutely invaluable! I'm in a similar situation with substantial retirement savings and two kids approaching college age, and I've been incredibly stressed about how our IRAs might impact financial aid. The clarification that FAFSA completely excludes retirement accounts as assets is huge - I had no idea about this distinction from CSS Profile schools. What really stands out to me is how much the CSS Profile policies vary between institutions. The advice about contacting schools directly and getting their specific retirement asset policies in writing is brilliant and something I definitely plan to do. One question I have that I haven't seen addressed: for families like ours with both traditional and Roth IRAs, do CSS Profile schools typically want the combined total, or do they sometimes treat Roth accounts differently since the contributions were already taxed? I'm wondering if the tax treatment affects how schools view these assets. Also, I'm curious about the timing aspect - should I be researching these institutional policies before my kids even finalize their college lists, or is this something to tackle after acceptances come in? Given how much aid policies seem to vary, it feels like this research might actually influence which schools we target. Thank you to everyone who has shared such detailed, practical experiences - this is exactly the kind of real-world insight that's impossible to find elsewhere!

As a newcomer to this community and the FAFSA/CSS Profile maze, I want to thank everyone for this incredibly informative thread! I'm in a very similar situation with two kids heading to college and significant IRA balances that have been causing me sleepless nights. The distinction between FAFSA (excludes retirement assets completely) and CSS Profile (varies by school) is so crucial to understand. I had no idea schools could have such different approaches to the same family's financial situation. The advice about contacting schools directly and asking for their specific retirement asset policies in writing is genius - I never would have thought to get those details upfront, but it makes perfect sense for planning purposes. One thing I'm wondering about that I haven't seen discussed much: for those who have gone through this process, how did you handle the emotional/psychological aspect of revealing so much financial information? I know it's necessary for aid consideration, but the CSS Profile feels incredibly invasive compared to what I expected. Did you find that schools were professional and discrete with the detailed financial information they collect? Also, I'm curious whether anyone has experience with schools that offer merit aid in addition to need-based aid - does having substantial retirement savings affect merit aid consideration at all, or is that typically based purely on academic/extracurricular achievements regardless of family assets? This community has been such a lifeline for understanding this complex process!

As a newcomer to this community, I'm incredibly grateful for this comprehensive discussion! Like many of you, I'm navigating the FAFSA/CSS Profile maze with two kids and substantial retirement savings, and this thread has been more informative than months of internet research. The key distinction everyone has highlighted - FAFSA excludes ALL retirement accounts as assets while CSS Profile schools each have their own methodology - is absolutely crucial for families like ours to understand early in the process. I'm definitely planning to follow the excellent advice about contacting schools directly and requesting their specific retirement asset policies in writing before finalizing our college application list. One area I'd love to get some insight on: has anyone dealt with the situation where you have both employer 401(k) plans AND individual IRAs? I'm wondering if CSS Profile schools typically lump all qualified retirement accounts together or if they sometimes distinguish between employer-sponsored plans versus individual accounts when applying their institutional methodology. We have about $150k in 401(k)s and another $200k in various IRAs, so understanding how schools view this mix could be important for our planning. Also, for those who mentioned getting merit aid in addition to need-based aid - did you find that applying Early Decision affected your ability to compare merit offers, or were most merit awards predictable enough based on published criteria that ED wasn't a concern? This community's real-world experiences are invaluable - thank you all for sharing such detailed insights!

As a newcomer to this community, I want to echo everyone's gratitude for this incredibly detailed discussion! I'm facing the exact same situation with substantial IRA savings and two kids approaching college, and I had been panicking about how our retirement accounts might impact financial aid eligibility. The key insight that FAFSA completely excludes retirement assets while CSS Profile schools have varying policies is such a game-changer for families like ours. I'm definitely going to follow the brilliant advice about contacting each school directly and getting their specific retirement asset treatment policies in writing before we finalize application lists. One question I haven't seen addressed yet: for families who might be right on the borderline for aid eligibility, have any of you found that schools using CSS Profile were willing to provide preliminary assessments of how your retirement assets might be treated? I'm wondering if it's worth asking financial aid offices for a rough estimate during the research phase, or if they typically only provide concrete calculations after you've submitted actual applications. Also, I'm curious about the appeals process - if a school's institutional methodology counts retirement assets in a way that seems to unfairly impact your aid package, have any of you had success appealing based on the fact that these are protected retirement funds rather than liquid assets available for college expenses? This thread has been more helpful than countless hours of searching official financial aid websites - thank you all for sharing such practical, real-world experiences!