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Do You Have to Claim an IRA on the FASFA?

by Mark Kennan, Demand Media

    The Free Application for Federal Student Aid determines your eligibility for grants and loans from the government based on your -- and if you're a dependent, your parents' -- financial assets. However, some assets, including qualified retirement plans like individual retirement accounts, don't count as assets.

    Ignore IRAs

    You don't have to report any of your Individual Retirement Accounts on your FAFSA, regardless of whether you have a traditional or Roth IRA. In addition, your parents are also excused from including their IRAs when reporting their financial assets on the FAFSA.

    School Daze

    Even though the FAFSA doesn't require you to claim an IRA, some schools may require you to disclose the value when you file for financial aid, according to personal finance company Kiplinger. This could decrease the amount of aid you receive from your school, though your federal grant and loan eligibility won't be affected.

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    About the Author

    Mark Kennan is a writer based in the Kansas City area, specializing in personal finance and business topics. He has been writing since 2009 and has been published by "Quicken," "TurboTax," and "The Motley Fool."

    Photo Credits

    • Ryan McVay/Digital Vision/Getty Images

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