<p>Hi, I have questions about net price calculators regarding one's parent's income and assets.</p>
<ol>
<li><p>Would a Cafeteria 125 health insurance plan reported on the W-2 form count as a source of untaxed income?</p></li>
<li><p>Would a 529 plan count as a parent or student asset? If it is counted as a parent asset, would it be held under the name of the child (me)?</p></li>
</ol>
<p>Thank you! It's really difficult trying to figure this out, and most of the calculators use very equivocal language regarding these specific assets and sources of income; both and I have been utterly confused by it.</p>
<p>A Section 125 plan is a flexible spending account. This is not technically an asset. It is money that is withheld from the employee’s pay to be used for medically-related expenses. If it is not used for that purpose within the year in which it is withheld, it is forfeited.</p>
<p>From the federal handbook: Flexible spending arrangements.
These are employee benefit programs, sometimes called “cafeteria plans.” Neither contributions to nor payments from these programs should count as untaxed income.</p>
<p>So for FAFSA schools, you wouldn’t see the cafeteria money anywhere. For Profile schools, though, it may be that you need to report money withheld for cafeteria plans as untaxed income (since it is voluntary). I am not 100% sure, though. Does the NPC say anything about cafeteria plans?</p>
<p>On some calculators, it will ask for money in flexible spending arrangements, but most of the time there is no mention of them. It’s not very clear. Should I just contact the schools I’m interested in later this year? (I think FA departments would be too busy until the class of 2017 is filled)</p>