Do 529 Plan Distributions Count As Parental Support When Determining Parent Of Record?
Award Year: 2024-25 KA-36860 Helpfulness Rating 785 page viewsThis guidance is specific to the 2024-25 award year and later.
Scenario: Over the 12 months prior to filing the FAFSA, much of the student’s costs will have been funded by a 529 education savings plan which is paying for all college costs. That is a large percentage of this student’s overall support for the year. The 529 plan was started by the parent with whom the student doesn’t reside. The parent holding the 529 plan is divorced from the parent with whom the student resides, and has been for a few years.
Answer: Yes. If distributions from a 529 plan taken out for the student plus other financial support account for more than 50% of the student's overall support, then that parent is the parent of record (primary parent) on the FAFSA.
See AskRegs Knowledgebase Q&A, Who Is the Parent Of Record On the FAFSA Starting In 2024-25?
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