FAFSA and student savings

itstoomuch
Tue, 02 Nov 2004 02:22:02 +0000

Also think about a 529 plan for your state. Amount contributed into yur state’s 529 is generally deductible to income at state level. If kid is within 2 years of college be very conservative.

UGMA’s and 529’s are tax ploys. Reduction to taxes could be considerable if you have planned years ago. May not be much help and perhaps dangerous if kid is nearing higher ed.