NRI Returning to India

529 Plan For NRIs Returning Back To India - Is It Still Worth It?

By Vikram Agrawal |Last Updated: December 4, 2025

529 Plan For NRIs Returning Back To India - Is It Still Worth It?

As an NRI returning to India with investments in a 529 savings plan, it is important to understand the Indian tax law implications. Parents living in the United States invest in 529 savings plans for their children's education, which is a smart move if you are in the USA.

Upon returning to India, the taxation scenario will change entirely. The 529 savings plan, which is known for its tax-free growth and withdrawals in the US, becomes taxable under Indian tax laws.

Vikram Agrawal(Tax Expert)

Mr Vikram brings in more than ten years of experience in US Taxation. He is also an EA mentor and instructor. The expertise of Mr. Agrawal includes accounting, bookkeeping, Tax preparation, small business tax, personal tax planning, income tax, financial advisory services, and retirement planning.

Frequently Asked Questions

Yes, You Can Use 529 Plans for International Education.

Yes, It is a Tax-saving Reality That is Better for Parents and Grandparents to Have a 529 Plan for Their Kids' Future Education.

No, You Do Not Need a Separate 529 Plan for Each Child. A Single Plan Can Be Used Efficiently for Multiple Children by Simply Changing the Beneficiary's Name.

In the Case Where the Beneficiary of the 529 Plan Does Not Use the Money, Then the Owner of the Account Can Change the Beneficiary's Name to Some Other Family Member and Roll the Funds Into a Roth Ira Account, or Can Use the Money for Other Qualified Expenses.

529 Plan For NRIs Returning Back To India - Is It Still Worth It?

Frequently Asked Questions

Can 529 Plans Be Used for International Education?

Is It Better for a Parent or Grandparent to Own a 529 Plan?

Do I Need 529 for Each Child?

What if the Beneficiary Does Not Use the Money in the 529 Account?

529 Plan For NRIs Returning Back To India - Is It Still Worth It?

Frequently Asked Questions

Can 529 Plans Be Used for International Education?

Is It Better for a Parent or Grandparent to Own a 529 Plan?

Do I Need 529 for Each Child?

What if the Beneficiary Does Not Use the Money in the 529 Account?