First, What Is a 529 Plan?
Our team has compiled alist of creative waysyou can fatten your bank account this week.
This is a long list, so dont get overwhelmed.
Go ahead and start now, but be sure to bookmark this post so you might easily return later.
Well keep it updated as offers changes or expire.
So, heres how to make your money stretch (not accounting for pizza in the dorm.
Thats on you).
Check out these four tips to get the most value for your money.
If Your Parents Funded a 529, Use That First.
And its all thanks to your old friend, FAFSA.
If Your Grandparents Funded a 529, Save It for the Final Year(s).
But as soon as you use the account, the FAFSA counts that money as your income.
Its an inverse relationship, she said.
If they pay the school too soon and too much, its going to be considered student income.
Say youre starting college this year.
(Thats right the FAFSA looks back two years.)
So whats the solution for using Grams 529?
Its safest just to wait until that last FAFSA is filled out, Weis said.
But if Gram used $8,000, then $2,960 would count as your income.
you could still use your 529 for qualified room and board expenses… probably.
But there are specific restrictions you gotta know about living expenses.
There are a lot of rules about whats considered room.
Either way, youre not going to save bundles by avoiding taxes.
Keep your receipts for your grocery runs youll need them come tax time.
Its Not a Use-It-or-Lose-It Fund.
Yeah, dont do that.
Return the favor to your family.
Tiffany Wendeln Connors is a staff writer/editor at The Penny Hoarder.
Readher bio and other work here, then catch her on Twitter @TiffanyWendeln.
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