<p>Okay so I have been on the phone with FAFSA five times in the last two days and still don't have a definitive answer! Help!</p>
<p>If you have Trustee accounts/Coverdell/Roth IRA/College Plans for student, are these listed as student investments or parent investments?</p>
<p>If they are listed as parent investments and you have them for younger children, do these get included in parent investments as well.</p>
<p>My reading of the FAFSA form says they go under parent asset and three answers from FAFSA say they agree but one FAFSA employee couldn't give me an answer and the last one told me it went under student.</p>
<p>HELP! I'm really losing my mind! THANKS..</p>
somemom
February 12, 2009, 9:18pm
2
<p>This answer has been thoroughly discusses on the finaid board here, it does not apply to me so I did not memorize the answer, but do an advanced search and you ought to find some good answers</p>
<p>IRAs are not reported at all on FAFSA</p>
<p>College plans such as 529 and coverdell, whether they are student or parent owned, are reported as parent assets (when the student is a dependent for FAFSA). </p>
<p>Other student assets such as UGMA accounts are reported as student assets.</p>
<p>from [What</a> is your current net worth of investments?](<a href=“http://www.fafsa.ed.gov/help/fotw33c.htm]What ”>http://www.fafsa.ed.gov/help/fotw33c.htm )
</p>
<p>From [What</a> is your parents’ net worth of current investments?](<a href=“http://www.fafsa.ed.gov/help/fotw43e.htm]What ”>http://www.fafsa.ed.gov/help/fotw43e.htm ) regarding parent assets
Note: UGMA and UTMA accounts are considered assets of the student, and must be reported as an asset of the student on the FAFSA, regarless of the student’s dependency status.</p>
<p>Investments also include qualified educational benefits or education savings accounts such as Coverdell savings accounts, 529 college savings plans and the refund value of 529 prepaid tuition plans. Note: Students who must report parental information on this form should report all qualified educational benefits or education savings accounts owned by the parents and/or the dependent student as part of the parental assets in question 92.
</p>
<p>Another helpful place with step by step information on how to answer the questions ishttp://studentaid.ed.gov/students/publications/completing_fafsa/2009_2010/ques5-2.html]Completing ”>http://studentaid.ed.gov/students/publications/completing_fafsa/2009_2010/ques5-2.html )
Coverdell savings accounts owned by your parents, 529 college savings plans, the refund value of 529 prepaid tuition plans, installment and land sale contracts (including mortgages held), commodities, etc. Do not include the value of life insurance and retirement plans (401[k] plans, pension funds, annuities, non-Education IRAs, Keogh plans, etc.).</p>
<p>Your parents must report in Question 92 all qualified educational benefits or education savings accounts, including Coverdell savings accounts, 529 college savings plans, and the refund value of 529 prepaid tuition plans that they own for any member of the household. This includes accounts owned by the dependent student.
</p>
<p>[Completing</a> the FAFSA 08-09/The Application Questions(40)](<a href=“http://studentaid.ed.gov/students/publications/completing_fafsa/2009_2010/ques3-2.html]Completing ”>http://studentaid.ed.gov/students/publications/completing_fafsa/2009_2010/ques3-2.html )</p>
<p>
If you are a dependent student who owns qualified educational benefits or education savings accounts, such as Coverdell Savings Accounts, 529 College Savings Plans, or the refund value of 529 prepaid tuition plans, you must report the values in Question 92, along with your parents’ asset information .
</p>
<p>Trustee accounts such as UGMA/UTMAs that are in the student’s name with parent as custodian: student asset</p>
<p>UGMA/UTMAs in a sibling’s name with parent as custodian: parent asset</p>
<p>Coverdell with student as beneficiary: parent asset</p>
<p>Roth IRA owned by the student: not reported as an asset
<p>College Plans (assuming you mean 529s) owned by student: parent asset
owned by parent with student as beneficiary: parent asset
owned by sibling: not reported (as far as I can tell)
owned by parent with sibling as beneficiary: parent asset
owned grandparent with student as beneficiary: not reported</p>
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</p>
<p>Is this correct? I have not read that anywhere in the FAFSA instructions. I do not think you report siblings assets on FAFSA. Though CSS may ask for them.</p>
<p>Swimcatmom,</p>
<p>Is that one reference really for FAFSA 07-08? I would only use the most recent instructions from 09-10. I believe federal law and FAFSA reporting changed slightly from last year to this year.</p>
<p>No it is the 08-09 instructions. I don’t know why it says 08-09 on the link but if you click on it, it will take you to 2009-2010 instructions.</p>
<p>Swimcatmom,</p>
<p>I had the same understanding … that UTMA/UGMA accounts were owned by siblings and not reported.</p>
<p>Just trying to find the reference.</p>
<p>Here is the on-line instructions for parent investments:</p>
<p>
Investments include real estate (do not include the home you live in), trust funds UGMA and UTMA accounts, money market funds, mutual funds, certificates of deposit, stocks, stock options, bonds, other securities, installment and land sale contracts (including mortgages held), commodities, etc.</p>
<p>Note: UGMA and UTMA accounts are considered assets of the student, and must be reported as an asset of the student on the FAFSA, regarless of the student’s dependency status.
</p>
<p>The definition of investments is the same for parent and student. I read this NOTE on the parent investments to mean that UGMA/UTMA accounts get reported by the owner (student) and doesn’t include sibling accounts.</p>
<p>Ok, sorry this should read:</p>
<p>UGMA/UTMAs in a sibling’s name with parent as custodian: not reported</p>
<p>I think the FAFSA instructions on all of this are incredibly confusing:</p>
<p>
Investments include real estate (do not include the home you live in), trust funds UGMA and UTMA accounts, money market funds, mutual funds, certificates of deposit, stocks, stock options, bonds, other securities, installment and land sale contracts (including mortgages held), commodities, etc.
</p>
<p>[What</a> is your parents’ net worth of current investments?](<a href=“http://www.fafsa.ed.gov/help/fotw43e.htm]What ”>http://www.fafsa.ed.gov/help/fotw43e.htm )</p>
<p>They are confusing. </p>
<p>So in summary for the OP</p>
<p>IRAs - do not report at all</p>
<p>529 accounts & Coverdells owned by the student or by the parent - report in parent assets.</p>
<p>Other student assets (including UGMAs, trust funds other than 529s) - report in student assets.</p>
<p>Sibling’s assets - do not report except on sibling’s FAFSA.</p>