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My parents passed away and left a small inheritance that I am not planning to access until I near retirement (10-15 years). Most of the funds are currently in an IRA account. Will these funds impact FAFSA? I have 2 children in college.

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Most of the funds are currently in an IRA account

You don't have much choice there. These have to go into your "Inherited IRA" account and be distributed within 10 years. Depending on the situation, you may be required to make RMDs ("Required Minimum Distributions").

So while the Inherited IRA itself is a non-reportable asset, the distributions from it are considered your income for FAFSA purposes. You'll need to consider timing these distributions accordingly.

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    And, you might have to take RMD's during the 10 years instead of just pulling it all out at the end of the 10-year period. Commented Oct 19, 2022 at 5:47

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