Do retirement accounts (IRA/401k) count as assets on FAFSA? Urgent clarification needed

Thank you SO MUCH for the clear answer! That's a huge relief. My parents have most of their savings in retirement accounts, so this will definitely help our SAI score. Just to double check - this is definitely true for the new 2025-2026 FAFSA too, right? I heard they changed some things this year.

That's actually incorrect. The FAFSA instructions explicitly state NOT to include retirement plans in the asset section. You don't list them at all. The form specifically says to exclude "retirement plans (401[k] plans, pension funds, annuities, non-education IRAs, Keogh plans, etc.)" from your reported assets.

Wait, so CSS Profile counts retirement? My daughter is applying to 3 schools that use CSS and 2 that just use FAFSA. This is so confusing!

Yes, some schools using CSS Profile DO ask about retirement accounts! But they typically only count a portion of them in their institutional methodology. Each school handles it differently. Check each school's financial aid website or call their aid office to ask how they treat retirement assets specifically.

Thank you for the clear explanation! That point #3 is really important - I think that's where some confusion came from. My friend's mom probably meant regular investment accounts need to be reported even if someone is planning to use them for retirement someday. Makes sense now!

does that service actually work? i tried calling fsa 3 times about my dependency override and got disconnected every time after waiting 45+ min

Yes, it definitely worked for me! They basically hold your place in line and call you when they get an agent. I was skeptical too but I was desperate after my second disconnection. Way better than listening to that hold music for hours.

This is incorrect and potentially harmful advice. The FAFSA instructions explicitly state NOT to include retirement accounts. People get selected for verification for many reasons, but following the official instructions won't be one of them. Including retirement accounts when they specifically say not to could actually reduce your aid eligibility until corrected.

Great decision! If you get selected for verification later (which happens randomly to many applicants), just make sure you have documentation about your family's assets ready. But you've done it correctly!

Yes, the Thrift Savings Plan (TSP) is a federal government retirement plan similar to a 401k, so it is excluded from FAFSA asset reporting. You don't need to include TSP balances on the FAFSA.

Thank you for sharing that tip about the tooltips! I'm just starting my FAFSA journey as a first-generation college student and honestly feeling pretty overwhelmed by all the financial terminology. It's reassuring to know there's built-in help right on the form itself. I'll definitely look for those question mark icons when I get to the assets section. This whole thread has been a lifesaver - I was planning to ask my parents about their 401k balances but now I know I don't need them at all!

@Mia Rodriguez You ve'got this! As another first-gen student, I totally understand that overwhelming feeling. One thing that really helped me was printing out the FAFSA worksheet first to review all the questions with my parents before actually filling it out online. That way we could gather all the documents we needed and talk through any confusing parts without the pressure of being logged into the system. The College Board also has some great resources for first-gen students navigating financial aid. Don t'hesitate to reach out to your school s'financial aid office too - they re'usually really patient about explaining things step by step!

@Mia Rodriguez You ve'got this! Being a first-generation college student is tough, but you re'asking all the right questions. One more tip - if you run into any confusing sections while filling out the FAFSA, don t'hesitate to ask here or call the Federal Student Aid helpline. There s'no such thing as a dumb "question" when it comes to financial aid, and getting it right the first time will save you so much stress later. The fact that you re'being proactive about understanding the process already puts you ahead of the game!

@Mia Rodriguez You ve'got this! Being a first-gen student is tough but there are so many resources available. Besides the FAFSA tooltips that Amaya mentioned, I d'also recommend checking out the Federal Student Aid website studentaid.gov (-) they have step-by-step guides and video tutorials that break everything down in simple terms. Don t'hesitate to reach out to your school s'financial aid office too - they re'usually super helpful and patient with first-time applicants. The hardest part is just getting started, and it sounds like you re'already asking the right questions!

@Mia Rodriguez You re'absolutely right to feel overwhelmed - the FAFSA can be intimidating, especially as a first-gen student! Those tooltips are seriously a game-changer. Another tip: if you re'ever stuck on a question, you can also save your progress and come back to it later rather than guessing. The FAFSA saves automatically every few minutes, so you won t'lose your work. And remember, even if you make a mistake, you can always go back and correct it before the deadline. You ve'got this! The hardest part is just getting started, and asking questions like you re'doing shows you re'already on the right track.