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Previously, distributions from a grandparent-owned 529 plan had to be reported as untaxed student income, which could reduce financial aid eligibility by as much as 50% of the withdrawal amount.
State and federal tax benefits make a 529 college savings account one of the more strategic ways to save money for college. But savers should be aware: Upcoming changes to the Free Application for ...
“Previously, the distribution from a grandparent or aunt or uncle from a 529 plan was treated as untaxed income to the student – which reduced aid eligibility by as much as half of the ...
Parent-owned 529 plans count for up to 5.64% of the parent contribution considered by the Free Application for Federal Student Aid (FAFSA), while grandparent-owned 529 plans ... 529 plan balance ...
Continue reading → The post How the 529 Grandparent Loophole Works appeared first on SmartAsset Blog. A 529 plan can be a powerful way to save for college, offering tax-free growth and other tax ...
Tax and financial aid benefits. The 529 plan can offer several tax and financial aid benefits to participants: ... grandparent-owned accounts hurt a student’s financial aid capacity even more ...
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