Can 529 plans be used for overseas education?

Should contributions to a 529 Education Savings Plan get similar tax benefits as a 401K?

• My company has recently started matching employee contributions to 529 plans (modeled after a 401k-style program)... and I learn that there's no way for our company to make our contributions on a pre-taxes basis.  Do you think the government could/should encourage people to save up for higher education by offering incentives similar to 401k but geared towards higher education?

• Answer:

  No, and the reason is that there's an important difference between the two types of accounts and that is where the money gets taxed. Funds going into a 401(k) are not taxed on their way in, and they grow tax free inside the 401(k), but they are taxed on their way out.  Funds in a 529 plan similarly grow tax free, but they come out free of tax if used for qualified educational expenses. So they can't be tax free going in as well. The government needs its bite of the apple somewhere, and you aren't worse off by making post-tax contributions to the 529.