hard · Certified Financial Planner General Principles
David Ibarra is concerned about the impact of assets on Mateo's future financial aid eligibility. Mateo currently has $22,000 in a UTMA and Elena has $85,000 in a parent-owned 529 plan.
How will these assets be assessed under the federal financial aid formula?
- The $22,000 UTMA is assessed at 20%; the $85,000 529 is assessed at a maximum of 5.64%.
- The 529 plan is assessed at 20%, but the UTMA is assessed at 5.64% due to the custodial nature.
- Both assets are assessed at 5.64% because Mateo is still a dependent minor.
- Both assets are assessed at 20% because the intended beneficiary for both is Mateo.
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