I've been working for five years and have a little money in a Roth IRA. I know that the FAFSA does not consider money held in those when calculating need, but do individual schools consider it when offering supplementary aid? I really don't want to withdraw it and possibly pay a penalty. Anyone know the story?
They took my Roth money into account for my expected financial contribution. I have also been putting money in it for about five years.
You are allowed to withdraw up to $10,000 from a Roth IRA for educational expenditures (in addition to the original money you put in) without penalty. However, I would not suggest doing that, this is probably the only vehicle you have for tax free growth over a lifetime. I know I am not touching mine (and will continue to add to it through the three years of law school).
Law school is so expensive that I don't think your Roth will have an effect in how much loan money you can get and the types of loans. I still qualified for the maximum unsubsidized and subsidized stafford loans, and the amount of investments you have doesn't affect how much you get in private loans since they are private.
Discussion
Resources
