I’m grandma owner/participant of my grandson’s 529 plan. Should I transfer it to his parents 529 plan for him. Trying to avoid negative impact on his future federal aid application. He’s 14, starts h/s this Aug. Straight A student. All his subjects are accelerated. Thank you very much. Their account is w/ Brightstart mine is w/ Iowa 529 plan.

Terry Says:  There’s no reason to combine them.  The parents’ plan will be included in their assets for the FAFSA form, which determines Federal Student Aid.  Your 529 will not be included in the aid formulas until it is used.  So they should save your plan to pay for the last year of college!  Here’s an interesting article from Finaid.org that explains in more detail.

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