529 grandchild
We would like to open a 529 for our new grandson in another state, but hear that this could cause problems with FAFSA. Are there also tax benefits for us, grandparents?
We are in Illinois and he is in Michigan. Thank you.
Terry Says
Since you live in ILlinois, you should open an account with BrightStart.com. You’ll get a deduction for up to $10,000 of contributions each year.
And since grandparent accounts are no longer counted in family assets, it’s an advantage for you to open the account. Don’t worry about FAFSA.
