Financial Aid and 529 Plans
The timing of withdrawals from a 529 plan is important when trying to qualify for financial aid. Tradition’s Frani Feit explains factors to consider on NJ.com.
Q. I set up a 529 for my great niece. Does this negatively impact her for college financial aid?
— Great Auntie
A. Congratulations on supporting your great niece’s education.
A 529 plan is a terrific vehicle for having funds grow free of tax as long as they are used for educational purposes.
There are also new changes that expand how 529 plan money can be used.
Starting in 2018, $10,000 of money in these plans can be used toward elementary and high school education each year, said Frani Feit, a certified financial planner with Tradition Capital Management in Summit.
Read the entire at NJ.com.
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