Gifting before FAFSA

I have a decent amount of cash between my checking and savings accounts. Can I gift that to relatives before I fill out FAFSA to cut down on my estimated contribution?

Have you filled up your Roth IRAs? IRAs are not part of the asset calculation for FAFSA.

You can put away all of 2005 ($4000/$4500 if over 50 yrs old)) and 2006 ($4000/$5000 if 50 yrs old) contributions before April 15. Both you and your spouse can have one.

This will let you hide up to $16000 between you and your spouse ($19000 if over age 50).

Also, if your AGI is $50K or less, you will be subject to the "simple test" which disregards all of your assets. You can reduce your AGI by adding to your 401K or other deferred retirement vehicle. For example, if you make $55000 after standard deductions, you can contribute $5001 (pre-tax) to your 401K and qualify for the simple test method by bring your AGI below $50000.

If you able, these strategies should put a dent in it without having to give it away.

Looks like I qualify for the "simple test" then. Thanks, this makes things a lot easier.

pricespector:: thanks that some good INFO