Reply to Moving $200,000 out of cash to improve chances for college financial aid?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]1. you cannot just put $200K in a retirement account; there's a limit to how much you can contribute
2. if you put it into a 529, when you withdraw it, it has to be for college expenses. If not, you will get taxed. Regardless, colleges will look at 529 amounts.
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And - doesn't the NPC still count the retirement and 529 as assets?  I find it very hard to believe that shifting savings from cash/stocks to retirement and college savings instruments (IRA/529) make a difference.   (minus maybe the person who recommended life insurance above...?)

The benefit of a 529 isn't to hide money but to get nontaxable gains over time.  I see no benefit to dumping cash into the 529 for kid who is about to go to college (unless it were a scenario where gifted grandparent money could still grow over time for something like med school or law school - but this isn't that scenario).
 
As far as your retirement is concerned - given your large amount of cash stocks....if you aren't maxing out on what you can contribute at work to 401K/TSP/etc ($23K + $7.5K if old enough for catch up). I'd start doing that max for both workers. And speak to your accountant about whether you can contribute to a max to IRA's. [/quote]

+1  I don't see how doing cash vs. a 529 helps you much.  The 529 has to be in the name of one of your kids anyway, and the FA calculator will count 100% of that assets in the kid's name towards your family contribution.  But as others have said, hire a financial aid counselor if you really think you have a chance at financial aid (I personally don't think you dont, with 300K HHI and 200K in liquid assets, but there are definitely people out there who make a living off helping people obscure their assets).[/quote]

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