Do I have to report retirement account balances on the FAFSA?

No. Qualified retirement accounts, including 401(k)s, 403(b)s, traditional and Roth IRAs, and pensions, are excluded from the assets you report on the FAFSA. This is a major reason financial planners urge families to prioritize retirement savings, which also happens to protect aid eligibility. Two cautions, though. First, contributions you made to those accounts during the base tax year are added back as untaxed income on the FAFSA, so a big contribution year can raise your assessed income. Second, schools using the CSS Profile may ask about retirement balances even though the FAFSA doesn't. For federal aid purposes, however, money inside retirement accounts stays invisible to the formula.