I am trying to find a clear answer with regard to 529 plan ownership and how it affects a student's federal financial aid. To be clear, I understand the following:
"If a 529 plan is owned by a dependent student or a dependent student’s custodial parent, it is reported as a parent asset on the FAFSA.
If a 529 plan is owned by an independent student, it is reported as a student asset on the FAFSA.
If a 529 plan is owned by a grandparent, a noncustodial parent or anybody else other than the student or a dependent student’s custodial parent, it is not reported as an asset on the FAFSA."
That being said, my son is an independent student, age 26. We no longer list him as a dependent on our taxes and our income is no longer reported to FAFSA. So if we were to open a 529 plan would we be considered a noncustodial parent at this point?