Grandparents Can Now Fund College Without Aiding Aid | Raleigh News

Grandparents can now dump serious cash into their grandkids’ education without wrecking financial aid—thanks to a 2024-2025 FAFSA update. Money from a grandparent’s 529 plan no longer counts as student income, undoing the old penalty that could slash aid by half. The new FAFSA Simplification Act ignores 529 distributions since they don’t appear on tax returns, opening the door for generous, tax-smart support. But beware: schools using the CSS Profile might still count it. Also, grandparents can “superfund” up to $95K (or $190K for couples) in one go, avoiding gift taxes while keeping control. And if the money isn’t used for college, it can roll tax-free into the grandkid’s Roth IRA starting in 2024—turning education savings into retirement gold. Listen in comfort:Get a discount on a Soli Pillow: http://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/81b048f39932cbbe