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- 529 plan withdrawal penalties 1 answer
My US-born daughter has triple citizenship - Brazil, US and UK. We live in Texas and I would like to start saving for her education. My wife and I are also considering sending her to private elementary/middle/high school, and as far as I know, under the new tax rules the 529 savings (or part of them) can be used for that purpose as well.
If my daughter goes to university in Brazil (where many universities are free), can I get the money out of the 529 plan back to myself as a regular investment provided that I pay the income tax that was deferred for all these years (and possibly a penalty)? i.e. can I "convert it" back to a regular investment account? More importantly, would it be worth it?
I know some universities in some countries (Canada, for exampe) accept 529 plans for the tuition costs. However, if she goes to university in another country that doesn't officially accept a 529 plan, is there any way I can withdraw the money to pay for her tuition, provided that I present proof to the 529 administrator?
If I never use the money to pay for college tuitions, is it OK if I use the 529 account for the sole purpose of paying for private school? I know there's a limit of how much I can use for that purpose.
For my specific situation, how do 529 plans compare to Roth IRAs?