Facts of the Month

A Note About 529 Plans

These days a lot of families find that A 529 College Savings plan is a great investment tool to use when saving for college.  However, please be aware that any money WITHDRAWN from a 529 Plan that is owned by someone outside the household (e. g. grandparents) will have to be listed as untaxed income when the student files the FAFSA the following year.  Students who will have combined taxable income and untaxed income over the student income protection allowance need to remember this if they are considering withdrawing money from a 529 not owned  by someone in their household

Publication Date: November 2012