Does anyone have experience or advice on reporting requirements for a 529 plan that has the student’s sibling listed as a beneficiary, but is not owned by the parent(s)? The parents are aware of the 529 plan because they have contributed to it, but they are not the account owner.
It does not need to be reported on FAFSA. I don’t know how the question about 529 accounts reads on CSS Profile, so I can’t speak to that form.
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Here is what the CSS Profile says:
“Current Market Value of Investments” and “Investments Include the Parent’s - 529 College Savings”
I believe that if the sibling’s name is on the 529 account and someone other than the parents or the sibling own the account, it is not reported on the Profile. If the parents own it, it must be reported even if it is in the sibling’s name. If the sibling owns it, it is considered the parent’s asset & is reported. See this link: Does a Sibling’s 529 Plan Assets Hurt Financial Aid Eligibility?.
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Thank you. That is the same answer as what our research has yielded. We wanted to post to find out what others determined in their personal experience, or if someone hadn’t personally experienced the situation, what they just judged to be the correct answer based on the information.
If it is not owned by the parents, it is not reported because it’s not a parent or student asset.