FAFSA Changes Make Grandparent 529 Plans Even Better
Grandparent-owned 529 accounts have received a lift this week from the Department of Educations’s announcement of new rules in regards to the FAFSA financial-aid application. Here is what’s happening:
* The base year of applying will change from the calendar year tax return prior to the start of the academic year to the calendar year two years prior the start of the academic year. Also knows as “prior prior”.
* Because of this change, grandparents 529 accounts can be used earlier in the child’s education without impacting the financial aid formula.
* Treatment of parent-owned 529 accounts do not change
