529 plan grandchildren

cincy_gal
Thu, 16 Dec 2021 21:10:40 +0000

@mom60 thank you for starting this thread.

I opened and have been contributing to a 529 for each of my grandchildren. DD has opened separate 529s for her children. DS has not done so yet. DS asked whether it made more sense for him to contribute to the 529 that I have set up for his children.

My state’s 529 is one of the top-rated ones. DS’s state’s 529 is not, and of course, he would forgo the state tax deduction if he contributed the ones that I opened.

I am aware of the recent changes to grandparent 529s. So, when it comes to financial aid, does it matter if it is a parent or grandparent 529? Anything else to be aware of with parent vs. grandparent ownership?