Reply To: 529 distribution counts as support by beneficiary or original owner?

Home Fairmark Forum Kids and College 529 distribution counts as support by beneficiary or original owner? Reply To: 529 distribution counts as support by beneficiary or original owner?

#4579
kaneohe
Participant

Not sure if this is what you are asking………..but I’ve always seen the same answer re: grandparent-owned 529s. Spending from those is considered the student’s income which is weighted heavily against the student for future financial aid. The fix is to not use these funds until the last 2 yrs of college when it won’t affect financial aid.
https://www.savingforcollege.com/intro-to-529s/does-a-529-plan-affect-financial-aid

not sure this is an IRS issue……..seems more like the FAFSA folks.