For years, 529 education savings plans have been best known as a smart way to save for college. But education doesn’t always follow a traditional four-year path, and recent updates have made 529 plans increasingly flexible to suit a wide variety of educational options.

Thanks to a recent update to federal law, certain credentialing and professional certification expenses are now included as 529 qualified education expenses. That’s great news for savers, and it makes a 529 plan like The Education Plan® even more flexible and practical for today’s learners.

What’s New: Credentialing Is Now a Qualified Expense

As of July 2025, certain credentialing and professional certification programs are now considered qualified education expenses. This means your 529 can now help pay for career-focused programs and credentials that are officially recognized and regulated.

To qualify, the program or credential must meet federal recognition standards, such as being:

• Listed on an approved state or federal directory, including
  • State workforce training lists under the Workforce Innovation and Opportunity Act (WIOA)
  • The U.S. Department of Veterans Affairs’ WEAMS directory
• Designed to prepare students for a recognized certification exam, where
  • The exam is required to earn or maintain the credential, and
  • The credentialing organization recognizes the program as valid preparation
• Identified by the U.S. Department of the Treasury, in consultation with the U.S. Department of Labor, as a reputable credentialing program
   

In addition, the credential itself must be officially recognized. Eligible credentials may include:

• Industry-recognized certifications, such as those
  • Issued by programs accredited by organizations like the Institute for Credentialing Excellence, the National Commission on Certifying Agencies (NCCA), or the American National Standards Institute (ANSI)
  • Listed in the Department of Defense’s Credentialing Opportunities On-Line (COOL) directory
• Registered apprenticeships, certified by the U.S. Department of Labor
• Occupational or professional licenses issued or recognized by a state or the federal government
• Other recognized postsecondary credentials defined under federal workforce laws and offered through approved programs
   

While the details matter behind the scenes, the big takeaway is simple:

If a credential or program is officially recognized and designed to prepare someone for work in a specific field, a 529 may now help cover the cost.*

This expansion makes a 529 plan more flexible than ever. It can support not just K-12 and post-secondary degrees, but the many education and training paths people take to build meaningful careers, at any stage in one’s career.*

Why This Matters for Families and Learners

Education today looks different than it did a generation ago. Many careers rely on:

• Industry certifications
• Occupational licenses
• Short-term training programs
• Continuing education to stay current

By expanding qualified expenses, 529 plans now better reflect how people actually learn, train, and advance in their careers. Whether your beneficiary plans to attend college, pursue a technical credential, or return to school later in life to upskill, a 529 can help support that journey.

More Flexibility, Same Smart Benefits

Even with this added flexibility, the core benefits of a 529 remain the same:

• Tax-deferred growth on your savings
• Tax-free withdrawals when used for qualified education expenses
• A wide range of eligible education paths
   

For New Mexico families, The Education Plan offers even more value, with state tax advantages designed to help your savings go further over time.

A 529 for All Kinds of Education Goals

From kindergarten through career, and now credentials in between, a 529 is about flexibility and keeping educational doors open.

By saving today, you give your loved one more options tomorrow, no matter how their education and career path unfolds. 

Ready to get started? You can set up an account in just 15 minutes. 

This information is for general educational purposes and should not be considered financial advice or tax advice. We recommend consulting with a tax professional or financial advisor for personalized guidance.

*For full details on qualified credentialing expenses, visit https://www.irs.gov/taxtopics/tc313.