529 International Graduate School Distance Learning

Forum|Forum|4 years ago
March 23, 2022
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Hello,

I've been trying to find the answer to a few questions I have regarding 529 accounts. I will be starting a PhD program in the UK beginning in January. The school is listed as approved to receive Title IV funds, however, I will be studying via distance learning. They also do not issue any 1098 forms.

I haven't been able to find out if a 529 would be eligible to cover tuition expenses. International distance learning programs in the UK are technically not eligible to receive any US governmental aid and it's one reason I will be having to take out a private loan to cover my expenses.

Also, I am self-employed....would I just contribute to a 529 as if I were not self employed?

My last question is on another topic completely. As a self-employed worker, I've been looking into setting up a Roth IRA. But am I even eligible to do so, or is the 401K solo be a better option.

Thank you!

TurboTax Self Employed Online

MAK70

Students can use a 529 plan to pay for online courses if the tuition and fees are paid to an eligible institution. An eligible institution is a college or university that is eligible for Title IV federal student aid. Because the school does not issue a 1098-T, you will have to keep records of your classes and tuition, proof of payment and transcripts to show completion of courses.

Yes, you can contribute to a 529 as self-employed if you are otherwise qualified.

You can contribute to a Roth IRA if you have compensation and are within the income limitations. A solo 401k is tax deferred unless you set it up with a Roth option- but a solo 401k provides less flexibility of you do not continue the business and there are other reporting requirements.