Thank you, MaryK4.
So, now it seems I still must tap those funds to pay for the education or move them to another child.
If the former, what is the tax basis? I already paid tax on the money going in. How do we figure it out how much to pay on the rest?
Is there a way the child can pay the tax based on his/her tax situation or rate? Can I transfer the account to the child? This child has actually not been a dependent on my tax form for the past few years, but I had planned to have this child as a dependent this year. If she is not a dependent, will that help to avoid taxes at my rate?
If I were to hold the money in the account until the child reaches 30, then is it taxed or is it rolled into a retirement account?
This is all so discouraging. I have this great big chunk of money that I just don't know the best way forward regarding it. Who knew when we planned for education that the child would choose an institution outside of the country to pursue a degree?
