How does a MOST 529 Advisor Plan affect eligibility for financial aid?
Contributions and earnings from Plan assets are not considered income for purposes of determining an account owner’s eligibility for financial assistance under any Missouri state aid programs. From a federal perspective, if a parent or dependent student owns the account, available balances in the account will be treated as assets of the parent and a college will generally consider no more than 5.64% of the account assets when calculating financial aid eligibility, as opposed to 20% of account assets if an independent student owns the account. Withdrawals from a MOST 529 Advisor account are generally considered part of a student’s income in determining financial aid for the following academic year. Guidelines can vary when a grandparent or other third party owns the account.
