My son was admitted to a school whose base tuition is $62,000. Based on our current income our parental portion would be $18-20,000 his freshman year. We own shares totaling 6% of a company my father in law started with others. The company is about to sell. Is there any way to shelter this once in a lifetime income for retirement rather than have to give it all to this school for the following 3 years of my sons education?
How much will the dispersement be? huge?
I seriously doubt that the base “tuition” for any undergrad school is $62,000. That sounds like the full cost of attendance.
You have two issues to deal with.
- The gain on the sale of the business which is income.
- The amount you have from this in your regular accounts the day of your FAFSA would be considered an asset.
For number 2, you could put whatever the maximum amount is into a retirement account (being careful not to exceed your allowable maximum). Balances in the retirement accounts are not viewed as assets.
BUT the amount you actually contribute will be income…regardless.
“Disbursement”, not “dispersement” guys (unless the money is being spread all over instead of just paid out!) Just wanted to mention that because the error appears twice in this thread, and I wouldn’t want it to get stuck in someone’s head and make its way into an appeal or essay.