Using 529 Plans for Credentialing Programs

Last week, we covered the expanded list of K–12 expenses that 529 plans can now be used for. This week, we will highlight how 529 Plan funds can be used for postsecondary credentialing and workforce training programs.

Postsecondary Credentialing Expenses

Beginning after July 4, 2025, 529 plans may be used for expenses related to recognized postsecondary credentialing programs, including:

• Tuition and required fees

• Books, supplies, and equipment

• Licensing or certification exam costs

• Continuing education required to maintain a credential

Program examples may include training or credentials connected to:

• State workforce development agencies

• Federally recognized apprenticeship programs

• Professional licensing boards

• Industry credential registries

If your program aligns with one of these categories, it may meet the definition of a recognized postsecondary credentialing program. Be sure to check with your 529 plan administrator for further guidance before taking a distribution.

These changes expand 529 flexibility beyond traditional college expenses, supporting both students and adults pursuing new skills or career paths.

Why This Matters

Education is changing, and so are the ways families invest in it. These changes allow families to use 529 savings for real-world career development while keeping the same tax advantages.

Each week, I share a clear, bite-sized tax insight straight from my continuing education so you can stay informed without sifting through tax changes.

Next week, we share an update about the new car loan interest deduction.

Thanks for reading,

Brandy Sparkman, EA

I’ll keep learning so you can stay focused on what you do best.

See you next week for another Tax Minute.