Anonymous
07/26/2024 13:15
Subject: Moving $200,000 out of cash to improve chances for college financial aid?
Anonymous wrote:Anonymous wrote:Is college tuition deductible from income?
No, since 2020. Some families can get tax credits but there are income limits.
https://smartasset.com/taxes/is-college-tuition-tax-deductible
DP. PP, thanks for this link. I've been meaning to look this stuff up.
Anonymous
07/26/2024 13:14
Subject: Moving $200,000 out of cash to improve chances for college financial aid?
College aid looks back at tax returns 2 years ago eg if entering Fall 2024, then 2022 tax year. Anything you do know only affects aid calculations in 2026.
If you want to make 200k disappear, I think your only options are to pay towards mortgage (for schools that don’t count primary home equity) or to gift it.
If you want to make 200k disappear, I think your only options are to pay towards mortgage (for schools that don’t count primary home equity) or to gift it.
Anonymous
07/26/2024 13:14
Subject: Moving $200,000 out of cash to improve chances for college financial aid?
Anonymous wrote:America likes to punish middle class savers. It’s better to have no savings and get full need based aid.
Do you hear yourself? How can you possibly cast yourself as a victim when you were in the position to put away money? It's like the average kid getting a lot of need-based aid had parents who were making a big salary and throwing it away. They were living paycheck to paycheck or putting away small amounts.
Anonymous
07/26/2024 13:14
Subject: Moving $200,000 out of cash to improve chances for college financial aid?
This is so out of touch, or trolling. I'm not sure which.
Anonymous
07/26/2024 13:14
Subject: Moving $200,000 out of cash to improve chances for college financial aid?
Anonymous wrote:America likes to punish middle class savers. It’s better to have no savings and get full need based aid.
You do realize that if you are UMC even if you didn't save you would not get full need based aid at 98% of colleges. And most truly middle class families haven't saved $200k.
Anonymous
07/26/2024 13:13
Subject: Moving $200,000 out of cash to improve chances for college financial aid?
Anonymous wrote:America likes to punish middle class savers. It’s better to have no savings and get full need based aid.
YOU STILL WOULDN'T QUALIFY, BASED ON HHI ALONE
Anonymous
07/26/2024 13:09
Subject: Moving $200,000 out of cash to improve chances for college financial aid?
America likes to punish middle class savers. It’s better to have no savings and get full need based aid.
Anonymous
07/26/2024 13:07
Subject: Moving $200,000 out of cash to improve chances for college financial aid?
Sounds sneaky. So you want to deny that you have money you have. And sign a legal formsaying you have been honest?
Is this how you roll generally?
Is this how you roll generally?
Anonymous
07/26/2024 13:06
Subject: Moving $200,000 out of cash to improve chances for college financial aid?
Anonymous wrote:Is college tuition deductible from income?
No, since 2020. Some families can get tax credits but there are income limits.
https://smartasset.com/taxes/is-college-tuition-tax-deductible
Anonymous
07/26/2024 13:05
Subject: Moving $200,000 out of cash to improve chances for college financial aid?
Go buy a luxury car with 200k. Car is not an asset in CSS or Fafsa.
Anonymous
07/26/2024 13:03
Subject: Moving $200,000 out of cash to improve chances for college financial aid?
Is college tuition deductible from income?
Anonymous
07/26/2024 13:03
Subject: Moving $200,000 out of cash to improve chances for college financial aid?
Sounds like college is just the emergency you've been saving up for. Congrats!
Anonymous
07/26/2024 13:02
Subject: Moving $200,000 out of cash to improve chances for college financial aid?
Anonymous wrote:Anonymous wrote:Please leave the financial aid to those who truly cannot afford college. You have the resources to pay, so pony up!
We'll already be paying $80,000. We're just trying to get some help for the remaining $10,000. We can barely afford the $80,000 but we're doing our best to make it work.
Your child can pay that $10K after graduation.
Anonymous
07/26/2024 12:45
Subject: Moving $200,000 out of cash to improve chances for college financial aid?
Anonymous wrote:Anonymous wrote:Please leave the financial aid to those who truly cannot afford college. You have the resources to pay, so pony up!
We'll already be paying $80,000. We're just trying to get some help for the remaining $10,000. We can barely afford the $80,000 but we're doing our best to make it work.
Hey, here's an idea - use $10,000 of the cash you have on hand!
Anonymous
07/26/2024 12:44
Subject: Re:Moving $200,000 out of cash to improve chances for college financial aid?
Anonymous wrote:Anonymous wrote: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.
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.
+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).