FAFSA 2025-26: Do I report my other child's 529 plans if I'm the owner?
I'm filling out the FAFSA for my son who's starting college next fall, and I'm confused about how to report different accounts. I understand that 529 plans where I'm the owner (but for my son) and joint accounts with my son should be reported under parent assets, while his UTMA account goes under student assets. But what about my daughter's accounts? She's in 9th grade and won't be applying for a few years. Do I need to include her 529 plan (where I'm the owner) and her savings account in my parental assets section on my son's FAFSA? I don't want to artificially inflate our contribution by including assets earmarked for another child, but I'm also the legal owner of those accounts.
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Danielle Campbell
Yes, you DO need to include your daughter's 529 plan on your son's FAFSA if you (the parent) are the owner of that 529 plan. The FAFSA looks at total parental assets, including 529 plans owned by the parents, regardless of which child they're intended for. The good news is that the FAFSA does have an asset protection allowance and only counts about 5.64% of parental assets in the SAI calculation, so it won't impact your son's aid eligibility as much as you might fear.
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Caleb Bell
•Thanks for the clarification. What about her regular savings account though? That one's in her name but I'm the custodian since she's a minor. Does that also count toward parental assets or is it excluded?
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Rhett Bowman
we went thru this last yr w/ our twins. u gotta include ALL 529s u own even if theyre for other kids. suuuucks but thats how they do it. but the % they actually count is pretty small so its not as bad as it sounds
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Abigail Patel
•I heard from my neighbor that if you move the 529 ownership to a grandparent it doesn't count on FAFSA at all! Is that still true with the new FAFSA?
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Daniel White
This is one of the most confusing parts of the FAFSA! Here's what you need to know: 1. 529 plans where YOU are the owner: Report as parent assets (even if for another child) 2. UTMA/UGMA accounts: Report as student assets (these legally belong to the child) 3. Your daughter's regular savings account: If it's a custodial account (UTMA/UGMA), don't include it. If it's just a regular account where you're a joint owner, it counts as a parent asset. The asset protection allowance means not all your assets count toward the SAI calculation. And remember that parent assets only affect the formula at about 5.64% of their value above the protection allowance, so $10,000 in extra reported assets might only increase your SAI by about $564.
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Caleb Bell
•This is super helpful, thank you! Her savings is actually a custodial account (UTMA) so it sounds like I don't need to report that one for my son's FAFSA. Just to be 100% clear - even though I'll eventually need to report it when she applies for aid, I don't include it for my son's application, right?
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Nolan Carter
OMG this FAFSA stuff is THE WORST. I spent 3 days trying to figure out what to include where, and then the system kept crashing on me when I tried to submit. I couldn't even get through to anyone on the phone to ask questions. I was on hold for HOURS.
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Natalia Stone
•Have you tried Claimyr? I was in the same boat last month - stuck on hold forever with Federal Student Aid. A friend recommended claimyr.com and they got me connected to an actual FAFSA agent in about 15 minutes instead of waiting for hours. They have a video showing how it works here: https://youtu.be/TbC8dZQWYNQ. Totally worth it just to get clear answers about these asset questions directly from an official source.
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Tasia Synder
this is why the system is so broken, punishes families who actually save for college for multiple kids. meanwhile my neighbor just puts everything in his business name and gets max financial aid 🙄
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Danielle Campbell
•That's not entirely accurate. Business assets are reported differently, but the FAFSA does account for them under specific circumstances. The federal system has also updated its methodologies to better address various sheltering strategies. What's most important is honest and accurate reporting to avoid potential verification issues down the line.
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Daniel White
To answer your follow-up question: Correct, you do NOT need to report your daughter's UTMA account on your son's FAFSA. UTMA accounts are only reported for the child who owns them when that specific child applies for aid. So her UTMA will only be reported when it's her turn to apply. For 529 plans though, it depends on ownership. If you're the owner of both your son's and daughter's 529 plans, both get reported on your son's FAFSA as parental assets. But remember, when your daughter applies later, you'll only report the remaining balance in her 529 (plus any other 529s you own at that time).
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Caleb Bell
•That makes perfect sense, thank you! I was overthinking this. So basically: - All 529s I own (for any child) → parent assets - Son's UTMA → his student assets - Daughter's UTMA → not reported until she applies I really appreciate everyone's help!
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Abigail Patel
Wait just to check, 529 plans are the college savings accounts right? or are those the investment ones? i always get them mixed up with IRA and 401k...
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Daniel White
•529 plans are specifically education savings accounts - named after the section of tax code that created them. They're different from retirement accounts like IRAs and 401(k)s. 529s offer tax advantages when the funds are used for qualified education expenses. They're reported differently on the FAFSA than retirement accounts, which generally don't count in the aid formula.
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Anastasia Romanov
Just wanted to add one more thing that might help - if you're worried about the impact of including your daughter's 529 in your son's FAFSA, you could consider timing. Some families strategically spend down one child's 529 first (for the older child's expenses) to reduce the reported asset amount for subsequent years. Also, make sure you're taking advantage of the American Opportunity Tax Credit if eligible - it can help offset some of the costs even if your EFC/SAI is higher than you'd like. The key is accurate reporting now, then optimizing your strategy for future years as both kids progress through school.
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QuantumQuasar
•That's a really smart strategy about spending down the older child's 529 first! I hadn't thought about the timing aspect. Since my son will be starting in fall, I should probably plan to use his 529 for his freshman year expenses, which would reduce our reported assets when I fill out the FAFSA again next year. And definitely good reminder about the tax credit - every bit helps when you're managing college costs for multiple kids. Thanks for the practical advice!
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Rudy Cenizo
•This is such valuable advice! I'm dealing with a similar situation with twins who will be attending college at the same time. The timing strategy makes so much sense - I never realized you could be strategic about which 529 to draw from first to optimize future FAFSA filings. Does this same logic apply when you have multiple kids in college simultaneously, or does it matter less since you'd be filing separate FAFSAs for each child anyway?
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