Using Funds in a foreign private boarding school?

[HopeB]

I am American but live in Denmark. We set up 529 Funds years ago for all of our three children ( who hold both American and Danish passports). Our eldest is now about to attend a private boarding school here in Denmark which we could like to use our alloted 10,000 USD a year to contribute to the tuition. However, the school is not on the 'approved' list of educational institutions. What is our next step to get this to happen? Input welcome .. Thank you

[dcandmc]

If the school is not an Eligible Educational Institution, 529 distributions used for attendance at that school will not be considered Qualified Education Expenses and tax and likely a 10% penalty will be assessed on the earnings portion of each distribution. You can always take that hit and use the 529 money as you wish.

[HopeB]

Yes... I know this but I am sure this school would qualify... it is only that there has never been an American student attending before. So how can I try and get the school on the Eligble Institute list?

[dcandmc]

I assume that the school is an elementary or secondary school (U.S. equivalent of kindergarten through grade 12) based on your reference to an "alloted 10,000 USD a year to contribute to the tuition." To quote IRS pub 970, "[a]n eligible elementary or secondary school is any public, private, or religious school that provides elementary or secondary education (kindergarten through grade 12), as determined under state law." So in order to have the school in Denmark deemed an Eligible Educational Institution for 529 purposes, it sounds like one of the U.S. states (or a similar U.S. jurisdiction) will have to make the proper determination for that school. I think that will be highly unlikely.

https://www.irs.gov/pub/irs-pdf/p970.pdf (see Chapter 8)