Cross-Border Implications
of Holding a 529 Plan
Many Canadians move for career opportunities to the U.S., work and raise families, and then plan to relocate back to Canada.
Download Our Ebook: Cross-Border Implications of Holding a 529 Plan
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How 529 Plans are Treated in the U.S.
A qualified tuition and educational savings plan for children (a 529 plan) is, in most cases, exempt from taxation in the U.S., even when a child attends a Canadian university. In Canada, these plans are taxable. If you are a Canadian citizen who resides in the U.S. and may one day return to Canada or a U.S. citizen moving to Canada, determining whether a 529 plan makes sense for your family is an important decision that should be discussed with a cross-border financial advisor.
Understand the Issues
Families moving to Canada from the U.S. must consider the tax implications, potential increased tax filings, and eligibility requirements of using 529 funds for Canadian colleges and universities. Download our e-book to learn more about the steps you should consider when holding a 529 as a resident of Canada.
The Cost for a College Education is Rising
On the conservative side, analysts are projecting 6% growth per year, and using this cost function to model the average tuition price 10 years from now, you will see above that the expected price of a 4-year public college tuition in 2024 is nearly $150,000.
About Cardinal Point
We specialize in assisting affluent Canadian expats, Canada-U.S. dual citizens, green card and visal holders, and snowbirds with their cross-border investment, tax, estate retirement and financial planning needs.
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Fiduciary Standard: Our professionals operate under the highest standard of care in the financial services industry.
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Independence: Clients benefit from access to a non-proprietary, conflict-free platform.
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Transparency: Our fee-based compensation structure is openly disclosed.
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Collaborative Approach: Our team of multidisciplinary professionals includes Certified Financial Planners® (CFP® Canada & US), Canadian and U.S. Chartered Accountants (CPA), Chartered Financial Analysts (CFA), and tax attorneys (Esq).
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Investment Expertise: We subscribe to a disciplined, tax-efficient and cost-effective investment approach.
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Holistic Financial Planning: Clients are profiled to learn about their values, goals, income, balance sheet, investments, insurance, and employee benefits, as well as all retirement, tax, education, and estate planning requirements.
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Integrated Cross-Border Financial Planning: We have a suite of personalized Canada-U.S. cross-border investment, financial and tax planning solutions.
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Client Service and Professionalism: Our practitioners are committed to service excellence.