A while back, I posted this link. At the time there was not much we could do with the info, but for Youngest we are retiring as he graduates high school and our income levels will plummet. We looked at sheltering assets in annuities, which would then be counted as retirement assets, but looks as though we won't have to do so:http://www.finaid.org/fafsa/maximize.phtmlIn certain circumstances, a slight decrease in the parents' income may yield a significant increase in eligibility for Federal financial aid. If both of the following are true The parents' adjusted gross income is under $50,000. All family members are eligible to file an IRS Form 1040A or IRS Form 1040EZ income tax return or aren't required to file (or were eligible for certain federal means-tested programs, such as SSI, the food stamp program, the free and reduced price school lunch program, TANFF, and WIC). then the family qualifies for the Simplified Needs Test which disregards assets when determining the expected family contribution. So if the family has a substantial amount of assets and the parents' income is close to $50,000, the parents should consider taking steps to reduce their income below the $50,000 threshold. Using various buckets of assets and income, we can easily keep our AGI under $50K. Will mean postponing rolling over regular IRAs to Roths until the kids are out of college, but could be well worth it.Caveat: not sure how old the linked article is or if it still is valid. Do your own due diligence.IP
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