Hal_Al
Level 15

Education

Q. Does 529 distribution count as self support, by the student-beneficiary?

A. No. 

 

I'm not aware of any updates on guidance from the IRS on this.  The consensus is still  that 529 money is support from the parent, as owner of the 529 plan. 

Google AI  (2026) gives that answer with the comment that 529 plans are treated as assets of the account owner  for financial aid purposes.