Grandparent 529 accounts

[klmama]

Does the grandparent have to pay the college directly?  Should parents pay, then grandparent use 529 funds to reimburse?  Any links you can suggest to explain how this works would be much appreciated!

 

 

Edited September 5, 2017 by klmama

[*LC]

Not an answer, but a question. Will your child be applying for financial aid? With that in mind, you may want to read these articles.

 

this Forbes article talks about how best to handle grandparentt 529s along with a lot of other 529 stuff.

 

https://www.forbes.com/sites/baldwin/2016/08/03/how-to-extract-more-mileage-from-a-529-college-savings-account/#135b80547cae

 

This one is a good explanation.

 

https://www.putnam.com/individual/content/wealthManagement/5084-be-smart-with-529-savings-plans-to-maximize-financial-aid

 

Will your child be applying to schools that require the CSS financial document? If so, then the information mentioned in these articles may not apply as some of those forms may require disclosure of non-parent ownded 529 plans.

 

 

Here is another one (not quite as recent)

 

www.blackrockblog.com/2016/09/13/how-to-529-college-savings/

[Julie of KY]

There are  several ways to get money out - the 529 account can pay the college directly, parents  can pay and then be reimbursed, you can request the money paid to you before you pay if you know the prices, but be sure not to take out too much.

 

 

[JeanM]

My parents put money in 529 accounts for my dc. My older ds just started using his, and the online account options are to send money to him, send money to the school, or send money to the person setting up the account. We're trying to be very careful with the accounting. So ds paid for his textbooks this week, and we've requested a check for that exact amount to be sent to him from the 529 account.

 

He is receiving financial aid, and we're aware that using the money will most likely decrease his aid next year. Therefore for this year, we're using the minimum possible from the 529.