The new provisions under President Trump's One Big Beautiful Bill Act, signed into law in July 2025, expand the use of 529 plans beyond traditional education savings. These accounts can now fund not only children's education but also adult career training and professional certifications.
Vivian Tsai from TIAA Education Savings highlighted that this transformation allows individuals to utilize 529 plans as lifelong education savings accounts. With $83.5 billion in assets, TIAA is a major player in this space. The tax advantages remain intact, as savings grow tax-free and withdrawals for qualified expenses are also tax-free.
The updated legislation includes a wider array of qualified expenses, such as tuition for credential programs and continuing education costs. Financial planner Nathan Sebesta noted that using 529 funds for career advancement makes financial sense, especially for those already investing in their education.
Steve Chen, CEO of Boldin, emphasized the importance of these funds for workers needing to retrain amid job transitions. However, experts caution that not all programs qualify for 529 withdrawals, and it's essential to verify that the chosen program aligns with federal guidelines.
This legislative change could lead to increased utilization of 529 plans, providing a valuable resource for lifelong learning and career development