Check my math, please - IRA vs. 529

thumper1
Mon, 26 Mar 2018 11:26:58 +0000

@hillite

If your kiddo is in college these years…these Tax years will be used…and FAFSA filed on these dates…examples!

Freshman 2019-2020 . FAFSA filed October 2018. Tax year used 2017.

Sophomore 2020-2021. FAFSA filed October 2019. Tax year used 2018.

Junior 2021-2022. FAFSA filed October 2020. Tax year used 2019.

Senior 2022-2023. FAFSA filed October 2021. Tax year used 2020.

So…just make that withdrawal any time in 2021…which would be Spring of your kid’s sophomore year in college. Assuming she graduates in four years, the 2021 income will NEVER be used on her FAFSA forms. Or Profile…

They use prior prior year tax returns now…and can be filed by October 1 of the year for the following academic year.