Ask An Expert
Q: I am completing the Free Application for Federal Student Aid, or FAFSA, application for college for my son. I need to know, do I have to list my daughter’s 529 plan on his application? — K.B., Orlando
A: Yes, since you are the owner of the 529 plan, you must list it on the FAFSA. — Helen Von Dolteren Fournier
Q: What is a cash-balance plan? — J.J., Orlando A: A cash-balance plan, which also is often referred to as a hybrid plan, is a defined-benefit retirement plan with some characteristics of a defined contribution plan. Employee accounts receive an annual contribution credit and an interest credit based on a guaranteed fixed rate specified in the plan document. A cash-balance plan might allow employees to accumulate substantially more than they could in a traditional defined-contribution 401(k) plan. Like a traditional definedbenefit plan, the employer bears the investment risks and rewards and like a defined contribution plan, the employee may take their cash balance and roll it over into an IRA upon termination of employment. — Jay Stokes
Have a question? E-mail us at askanexpert@fpafla.com. Include your name (only your initials will be printed), hometown and phone. Questions are answered by certified financial planners from the Central Florida Chapter of the Financial Planning Association. Answers are for educational purposes only. Please consult your financial professional. Questions and answers may be edited for space considerations.