529 plans and relocating out of country

[s0198362]

In a similar vein to a topic I started on HSA accounts.

I will soon be moving to the UK.  The UK does not recognize 529's as a tax advantaged account, so investment dividends will be taxed.  It seems to be critical that to avoid too much taxation, any funds I hold are in UK reporting funds.

https://www.bogleheads.org/wiki/US_domiciled_ETFs_that_are_UK_HMRC_reporting_funds

The issue I have is my son's 529 is held in Georgia (Path2College).  Currently it is a target date fund, but I can transfer to something like TIEIX.  However that is not a reporting fund in the UK.  Are there any 529 providers that allow investments in standard Vanguard ETF's?  Can I even transfer a 529 plan from one provider to another?  He is too young to be able to spend anything in it.

If anyone has any other relevant "thoughts" on 529, transfers and how to manage them in the UK, I'd appreciate it.

Another thought is to change the beneficiary to my wife and then use it pay down her student loans (although we are waiting to see what happens after this next election to see if that is worthwhile).

[s0198362]

Further info.

I cannot do a 529 - roth conversion, as we have not had the funds for the 5 years required.

[secondcor521]

What I would probably try in your shoes is to see if there are any family relatives of your son who would remain in the US and who would agree to serve as custodian.  You'd have to trust them, of course.

Changing the custodian should be easy and is tax free.