Not Counted as Asset for Financial Aid
Many people worry about contributing to a 529 plan because of the impact on financial aid. That worry is largely overblown, mostly because only about 5% of the money inside of a 529 plan is actually counted for financial aid purposes, and because having money is much better than needing it.
Still, a Roth IRA isn’t counted as an asset for financial aid purposes at all, and the last time I checked 0% is less than 5%. So in some situations, having your college savings in a Roth IRA may help you qualify for financial aid.
Many people worry about contributing to a 529 plan because of the impact on financial aid. That worry is largely overblown, mostly because only about 5% of the money inside of a 529 plan is actually counted for financial aid purposes, and because having money is much better than needing it.
Still, a Roth IRA isn’t counted as an asset for financial aid purposes at all, and the last time I checked 0% is less than 5%. So in some situations, having your college savings in a Roth IRA may help you qualify for financial aid.
