A New Path to Skills: How 529 Plans Support Certification Training
How 529 Plans Can Now Fund Certification Training
For decades, 529 education savings plans were viewed almost exclusively as college tuition tools. But a major federal policy shift in 2025 has transformed these plans into flexible career training resources, including for industry recognized certifications. This change is a milestone for students, career changers, and working adults who want to enter high demand fields like IT, cybersecurity, and cloud computing without the cost of a traditional degree.
In July 2025, Congress passed the Freedom to Invest in Tomorrow’s Workforce Act as part of a broader tax overhaul. The law officially amended Section 529 of the Internal Revenue Code to include “qualified postsecondary credential expenses.”
This means 529 funds can now be used for:
Professional certifications
Occupational licenses
Non degree training programs
Exam fees and test prep
Continuing education aligned with workforce needs
The intent is to modernize 529 plans to support the pathways Americans use to build careers today.
According to updated guidance from education and financial organizations withdrawals made after July 4, 2025, qualify for the expanded uses. This includes certification fees, training programs, and related materials. States and individual 529 plan administrators may take time to update their documentation, but the federal eligibility is already in effect.
If you are planning to pursue a certification now, and you have 529 funds, they can be used as long as the certification meets the new federal criteria.
While the law does not list specific certifications by name, it covers non-governmental professional certifications that meet recognized workforce standards. Certifications that align with high growth job sectors and are widely accepted by employers, government agencies, and workforce programs. The certifications that frequently appear on the following lists are likely to be eligible for funds.
Workforce Innovation and Opportunity Act (WIOA) state approved training lists
Credentialing Opportunities On Line (COOL) directories
Employer recognized cybersecurity and IT job frameworks
By allowing 529 funds to cover certification training, the government has opened the door for:
Faster entry into high demand careers
Lower out of pocket costs for learners
More accessible pathways into IT and cybersecurity
Support for mid career reskilling
How to Confirm Certification Is Eligible?
Because 529 plans are administered at the state level, you need to verify eligibility before withdrawing funds. Save receipts for exam fees, training courses, and materials in case your plan requests verification. Here are some suggestions to verify eligibility:
Check your state’s WIOA approved training list. Many states list CompTIA certifications as eligible training programs. These lists are updated regularly and reflect workforce aligned credentials.
Contact your 529 plan administrator. They can confirm whether your intended certification or training provider meets the new federal definition of a “qualified postsecondary credential expense.”
Review your plan’s updated guidance. Many states have already published guidance explaining that certification fees and continuing education now qualify under the new law.
A 529 plan can now support both traditional college pathways and modern, skills based career routes. This policy shift recognizes that today’s workforce is built on more than just degrees, it is built on skills.
Mike
