A 529 plan is a savings account that pays for a student's qualified education expenses while attending college. This includes not only tuition and room and board, but also computer equipment, books and mandatory school fees. However, a student can only use 529 funds at an eligible educational institution.
Foreign Schools May Receive 529 Funds
A student can use funds from her 529 plan to pay for studies at a foreign university if the school is an eligible educational institution. This is any vocational school, college, university or other post-secondary educational institution that participates in financial aid programs sponsored by the U.S. Department of Education. Students can confirm a foreign school's eligibility by conducting a "Federal School Code Search" on the Department of Education's Federal Student Aid website. The search lists domestic and foreign schools that participate in the department's financial aid programs.
References
- U.S. Securities and Exchange Commission: An Introduction to 529 Plans
- College Savings Plans Network: Common 529 Questions
- IRS: 529 Plans - Questions and Answers
- CNN Money: Can a 529 Plan be Used for International Schools?
- IRS. "What Is an Eligible Educational Institution?" Accessed Oct. 4, 2020.
- U.S. Department of Education. "Database of Accredited Postsecondary Institutions and Programs." Accessed Oct. 4, 2020.
- IRS. "Publication 970, Tax Benefits for Education." Accessed Oct. 4, 2020.
- IRS. "Am I Eligible to Claim an Education Credit?" Accessed Oct. 4, 2020.
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