How do college funds set up by grandparents impact financial aid?

529 plans owned by the grandparents do not have to be listed on the FAFSA, however, FAFSA does require students to report distributions from those plans. Worse, the penalties do not occur until the student’s second year in college, often blindsiding the parents with a reduced financial aid award.

If your family has the benefit of a grandparent-owned 529 plan, EPR can provide you a strategy to avoid the costly penalties that can be associated with these plans.