Business Plans Purpose
February 9th, 2010
Question: Can 529 plans be used to save for tuition for schools outside the US?
I am looking to save money for tuition for a reputed Business School outside the US. I am a non-resident alien working in the US, but am a resident for tax purposes.
If I use a 529 plan to save money without tax, is it totally tax-free when saving as well as when withdrawing? Can the money be applied to tuition and supplies at a non-US school? (say France or Singapore?)
The school is INSEAD, based out of France and Singapore. Apparently it is not in the list.
Answer: The 529's grow tax free and the distributions are tax free as long as they are for an eligible educational institution.
An eligible educational institution is one that is eligible to participate in a student financial aid program under Title IV of the Higher Education Act of 1965. Most community colleges, public and private colleges, universities and vocational schools in the United States are eligible educational institutions. Some foreign institutions are also eligible. To find out if a school is eligible, go to the Department of Education’s website.http://www.fafsa.ed.gov/FOTWWebApp/FSLookupServlet
I would check out the American Funds 529.
Related Business Plans Purpose Products:
Running a Business : How to Write a Business Plan Proposal
Posted in 
Tags: