A 529 college savings plan account that is owned by the student or the student’s parent must be reported as an investment asset on the Free Application for Federal Student Aid (FAFSA). Distributions from such a 529 plan are not reported as income on the FAFSA.
What assets are reported on FAFSA?
Assets include other investments, such as real estate (other than the home in which your parents live), Uniform Gifts to Minors Act (UGMA) and Uniform Transfers to Minors Act (UTMA) accounts for which your parents are the owner, stocks, bonds, certificates of deposit, etc.
Do I include all 529 accounts on FAFSA?
Yes. Qualified educational benefits and education savings accounts (like 529 Plans) are reported on the FAFSA. For a dependent student, the accounts are reported as parental investments in question 91 on the FAFSA. This includes all accounts owned by the student and by the parents for any member of the household.
How are 529 savings plans reported on the FAFSA?
This is regardless of whether the student or someone else is the beneficiary. If the non-custodial parent owns a 529 plan account with the student as the beneficiary, it is not reported as an investment asset on the student’s FAFSA, but any distributions are reported as untaxed income to the student on the subsequent year’s FAFSA.
Can a 529 plan be reported as a parent asset?
529 college savings plan accounts, on the other hand, are reported as a parent asset if the student is a dependent student, regardless of whether the 529 plan account is owned by the student or the parent. The following is the relevant excerpt from the FAFSA instructions:
Where can I get a copy of my 529 report?
If you do not want to fill out your FAFSA online, you can print a form from FAFSA on the Web, under “FAFSA Filing Options,” or you can get a copy at the financial aid department at your school. If you cannot find a copy of your 529 plan report, contact the financial adviser that manages your 529 college savings plan.
Is the 529 account owned by the student?
The custodial 529 plan account is owned by the student, and if the student is a dependent student, treated as an asset of the parent who completes the FAFSA.
