FAFSA Question - First child in College

<p>OK – I’m a new FAFSA filer. We don’t expect to be eligible for financial aid because we both work fulltime and our child’s first choice is Penn State which is instate for us.</p>

<p>Can anyone help with some questions?</p>

<li> We have a 529 PA TAP account. We have both a Guaranteed Account – (pre purchase of credites) and an investment savings account both through PA TAP – a 529 plan.</li>

<p>Where do we report?</p>

<li> Do 401k balances and IRAs get reported anywhere?</li>


<p>Advice, I could be wrong as I don't have my FAFSA info with me, but I believe you don't have to report the pre-paid tuition plan at all on FAFSA. Seems to me that the instructions stated that clearly. However, the 529 plan does have to be reported. In our case, it went under our son's assets as the plan is his (UGMA). I will look at it again when I get home. </p>

<p>Now CSS Profile was a different story. We did report the pre-paid somewhere on that. </p>

<p>Sorry, wish I could be more definitive for you, but my memory is going as I get older!</p>

<p>Lukester -- Thanks, but I thought the pre-paid tuition is a 529 plan? I'm confused and probably need to spend more time reading the directions!</p>

<p>call fafsa and ask (have the FAFSA worksheet in front of you). they aren't very busy right now and it is good to get it directly from the horse's mouth.</p>

<p>I called them earlier and spent only about 4 minutes on hold before I got a person to talk to.</p>

<p>Retirement funds (IRA & 401k) balances are not reported on the FAFSA or Profile, though some individual schools might ask about them. Any contributions for 2005 are reported and added back to your income.</p>

<p>Advice, I pulled up the FAFSA worksheet online. Under Section 6 Student Assets and Veteran's Benefits at the top are a few paragraphs of instruction. The second parargraph has a laundry list of investments to include. In this paragraph it includes ". . . Coverdell Savings accounts, college savings plans . . ." In the third paragraph, it has a laundry list of investments that you do not include ". . . pre-paid tuition plans; or cash, savings . . ."</p>

<p>I our situation, we have both a pre-paid tuition plan which I did not include on the FAFSA per their instructions and a 529 College Savings plan which I did. </p>

<p>In addition, I don't know if you are also filling out the CSS Profile or not, but if you are, then there is a place to list your pre-paid tuition plan as an asset. If you do fill out the CSS Profile, the value you list for the pre-paid tuition plan is the amount of money you initially paid for it, NOT the value of the plan today. I checked with our state on that. Hope this helps.</p>

<p>Thanks Lukester -- You're very helpful. The most confusing to me is the difference in reporting the 529 College Savings and the Prepaid. I live in Pennsylvania and access both accounts through the <a href="http://www.patap.org%5B/url%5D"&gt;www.patap.org&lt;/a> website. Both accounts are listed as 529 accounts one is called Guaranteed Savings Plan (this is the one where you buy college credits at a specific school's price) and the second is the Investment Plan (where you invest in different funds) --- We did list everything on the CSS Profile.</p>

<p>I'm going to call Fafsa --- and I'll post the answer. Thanks again!</p>

<p>I called FAFSA and was told to enter information on Line 82 for Parents' assets.</p>