<p>Hi - you would think being an accountant and that I have now done the FAFSA for three years, that I would know the answer to this question. </p>
<p>When I am doing #1 son's FAFSA, should I be including also #2 son's 529 plan? And Vice Versa? I have heard both - that I should and that I shouldn't. In my case, I am actually legally prevented from cross-using the funds due to a settlement with ex hubby. So I only included each child's on his individual FAFSA. </p>
<p>Mind you - I have already DONE FAFSA - I am just curious now as to whether I did it properly or not.</p>
<p>My understanding is that all parent-owned 529s should be included as a parent asset, regardless of beneficiary. This is because money can be legally be shifted from one 529 to another despite having different beneficiaries (your divorce settlement notwithstanding). </p>
<p>I'm also under the impression that student-owned 529s that are owned by siblings should * not * be included as parent assets on FAFSA. Money in these accounts belong to the sibling and cannot be transferred anywhere else. So in this case, if you're doing S1's FAFSA, you would not include S2's student-owned 529, if any, as an asset.</p>
<p>Agree with vballmom. They've managed to make the whole 529-reporting area of FAFSA completion quite complicated, through new legislation, loophole closing, and changes in guidance. But I think the answer vballmom gave is correct. Today, anyway. :)</p>