529 savings planscan be used to pay for study-abroad programsbut not to cover day-to-day expenses or travel costs,which can be substantial. The host school must be approved by the U.S. Department of Education to be eligible for 529 funds. The student must also be enrolled at least half-time for their room and board costs to qualify.
People also ask
Can you use a 529 plan to pay for study abroad expenses?
You can use 529 plan funds to pay for study abroad expenses if the study program at the foreign institution is eligible for credit at the student’s US home institution, and if the foreign institution is eligible for Title IV federal student aid, which can be determined by looking for the federal school code.
Where can you use 529 plan money tax-free?
You can use 529 money tax-free at any college that is eligible for federal financial aid, which includes more than 400 foreign institutions, says Mark Kantrowitz, of Savingforcollege.com. To look up eligible schools, go to www.savingforcollege.com/eligible_institutions.
Can a 529 plan beneficiary take a tax-free distribution from an international school?
Students must be enrolled in school at least half time for a 529 plan withdrawal to count as a tax-free distribution. The beneficiary may enroll at an international school for their entire educational program, or they can choose to spend a semester or two abroad. For the latter option, the student classes must be accepted for credit by a U. S.
Can I use a 529 plan to pay for a host school?
The host school must be approved by the U.S. Department of Education to be eligible for 529 funds. The student must also be enrolled at least half-time for their room and board costs to qualify. A 529 plan is a tax-advantaged savings account for education.