Policies & Procedures: Our Treatment of IRAs and Information Relating to Hope and Lifetime Learning Credit
Conversions from a Traditional IRA to a Roth IRA
We have decided that we will not count the increase in adjusted gross income attributable to converting a traditional IRA to a Roth IRA when determining the Parental Contribution for Haverford College aid. In addition, we will not take into account the increased Federal Income Taxes due because of the traditional IRA to Roth IRA conversion. Since neither the Profile nor the FAFSA will provide information to allow us to determine that "other income" is from such a conversion, we would ask you to specify the amount of traditional IRA converted to Roth IRA in the "Explanations" section of the Profile Application or address a separate letter to the Haverford College Financial Aid Office with the same information. Also, be sure to include IRS Form 8606 with the tax return you send to us. Note that while these conversions are not counted, withdrawals from IRA's or other retirement funds are counted as income on both the FAFSA and Profile.