529 Plans
Hi Terry, thank you for presenting at the NYL webinar today. One question I had was about 529 plans. I think you mentioned that if you set up a 529 plan for a child, you will not have to show on the fafsa forms. Can you please tell me more about this and how it works? Thank you very much.
ps. Keep up the great work!
Terry Says
Thanks for attending. I didn’t say they “don’t show up” on a FAFSA form, but the asset carries far less weight in the FAFSA formula than money held in a child’s name in a custodial account. A 529 plan is by far the best way to save for college. Use either your state’s plan (if you get a tax break on state taxes for your contribution) or search for a top rated plan at www.SavingforCollege.com.
