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[Oleg Konovalov]

Hi,

I am canadian citizen living permanently in US (in NJ).

I used to contribute to education IRA in Canada, but since I don't live
in Canada, they don't allow me to contribute to it anymore.

So now I am planning to open a Coverdell or 529 plan in US (NJ).
But I need to find a plan which covers both US and Canadian colleges.
[looks like NJ's 529 covers only US colleges]

What would be my best option ?

I am not planning to contribute more than $2000/yr,
my son is almost 10 now.

Do you think having education plans in both Canada (frozen)
and in US might screw me up ?

Thank you in advance,
Oleg.

[Steve Blank]

Oleg,

The 529 and Coverdell programs should be good at any U.S. school and
many foreign schools as well.

IRS Publication 970 says that a Qualified Tuition Program (Coverdell and
529's)may be used at "any college, university, vocational school, or
other postsecondary educational institution eligible to participate in a
student aid program administered by the Department of Education. It
includes virtually all accredited public, nonprofit, and proprietary
(privately owned profit-making) postsecondary institutions. The
educational institution should be able to tell you if it is an eligible
educational institution.
Certain educational institutions located outside the United States also
participate in the U.S. Department of Education’s Federal Student Aid
(FSA) programs. You can find a list of these foreign schools on the
Department of Education’s website at www.fafsa.ed.gov/index.htm. Click
on “Find my school codes.” Complete the two items on the first page and
click “Next.” Follow the instructions to search for a foreign school."


Steven B. Blank
College Financial Aid Consultants
29 Ives Hill Court
Cheshire, CT 06410
(203)250-7761



Oleg Konovalov wrote: