Learning Library Quick Answers Investment Planning

If a client moves cash into an annuity, is it viewed as putting money into a retirement plan and therefore not counted as income on the FAFSA?

Answer:The FAFSA is looking for tax-deductible/pre-tax contributions to tax-deferred pension and savings plans. Putting money into....

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If a parent contributes money to a 529 plan, but the grandparent is the owner, can the grandparent claim a state tax deduction?

Answer: No, it is the taxpayer that makes the contribution that gets the deductions, if they are eligible.....

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If distributions from 529 plans exceed expenses incurred for a given year are they potentially taxable?

Answer: This comes down to documentation. Make sure to have adequate documentation for the expenses and distributions taken to pay....

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If the owner of a 529 College Savings Account needs nursing home care, will the 529 College Savings Account be lost to the nursing home expenses?

Answer: The simple answer is that there is no clear answer. Once a gift is made into a 529 College Savings Account the money in th....

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If we convert a UGMA/UTMA to a 529 plan for younger siblings, would this still need to be included as a parent asset?

Scenario: On the FAFSA instructions, the definition for investments reads: "Note: Students who must report parental information on....

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