Child is 18, and will be starting college in the fall. If the 529 is in the child’s name, then there would be FAFSA implications? Would it be as income (due to gift) plus asset (if money is in account at time of filing FAFSA.) Or would student income increase only come into play when withdrawing from 529?
What if the 529 was in parent name?
School is not a Profile school.
Would it be possible for friend to change account owner to my husband…and then he liquidate the account? We would then pay the taxes and penalty fee. What would the tax and FAFSA implications be in this scenario?
Thank you to everyone for responding!
Thank you for your responses!