FAFSA and student savings

itstoomuch
Tue, 02 Nov 2004 02:16:50 +0000

Move the money into UTMA/UGMA if not already. Look for dividends not interest since dividends taxed differently than interest. If in mutual funds then already in UGMA then look for capital gains and loses since gains have a maximum tax of 20% (less if kid’s bracket is lower) and loses fully deductible up to $3000/yr.