How to Report 529 College Savings Plan on CSS Profile

Families use many different financial instruments to save for college. From the time the child is born, or in some cases even before, parents, grandparents, and other family members put money aside to help pay for the future cost of college. One of the most popular strategies is to use a 529 College Savings Plan. Let’s take a look at 529 college savings plans and how it should be reported when completing College Board’s CSS Profile.

529 College Savings Plan

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What is a 529 College Savings Plan?

A 529 plan is a type of savings plan designed to encourage families to save for future higher education expenses. Named after Section 529 of the Internal Revenue Code, these plans are run by states or educational institutions, and are specifically created to help families set aside funds for college. The funds in a 529 plan grow tax-free, and withdrawals for qualified educational expenses are also tax-free.

How to Report 529 College Savings Plan of CSS Profile

529 College Savings Plans are reported as parent investments. The CSS Profile often requires an application from both the custodial and non-custodial parent. If a 529 plan is listed under the name of the custodial parent, it should be considered under the custodial parent’s investments. Likewise, if a 529 plan is in the name of the non-custodial parent, it should be listed under the non-custodial parent’s investment total on the non-custodial CSS Profile.

The CSS Profile also asks about assets owned by parents which are held in the names of their other children. ‘Other children’ refers to siblings of those submitting the CSS Profile. It’s common for families to have 529 plans set up for all of their children. If that is the case, this is the section where families would need to account for the total held in 529 plans of other children beyond the applicant.

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