Is there any way to get an advance determination about whether the IRS would agree to a 529 fund covering costs at a certain college? I’d hate to take the risk of “just trying it out”! The college in question is in Japan, and is on the fafsa participation list, but it is designated “deferment only” meaning it never actually receives any federal loans (or grants).
I would call your 529 plan and ask them.
Don’t ask the IRA and don’t ask the 529 administrator. Try this:
https://ope.ed.gov/dapip/#/home
Or this:
Or contact the school and ask if they are eligible to participate in a student aid program administered by the U.S. Department of Education.
Since you have already found a source telling you that the school is designated as “deferment only,” I suspect that the school is not an eligible educational institution for 529 purposes.
TS0104–already called my 529 plan. They have no authorized college list, and referred me to an IRS document that offers little insight. The service rep I talked to said she didn’t think any college abroad that couldn’t get Fed loan payments could qualify for 529 payments without the 10% penalty. But she didn’t know for sure. “Deferment only” colleges abroad cannot qualify for fed loans (or grants) even though they “participate” in US financial aid.
BelknapPoint–the accreditation link you sent only appears to list colleges in US states and territories. The Savingforcollege link DOES list the Japanese college we’re considering, but I guess I’d prefer to hear it from the “horses mouth”–either an IRS or Dept of Ed contact, or even someone who’s “been there done that”. I’m afraid contacting the college in this case would just result in bewilderment of their staff. It’s down to the IRS on whether to accept 529 withdrawals for this, as they’re the ones to level the penalties.