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Expanding 529 Savings Plans for Vocational Training and Apprenticeships.

This act broadens the use of tax-advantaged 529 savings plans, which were previously limited mostly to college expenses. Citizens can now use these funds tax-free to cover costs associated with technical training, registered apprenticeship programs, and obtaining professional certifications. This change provides greater flexibility in financing non-degree education and supports workforce skill development.
Key points
Funds from 529 savings accounts can now be used to pay for vocational training, technical courses, and registered apprenticeship programs.
The change covers expenses like fees, books, supplies, and equipment required for certified training and credential programs.
This expansion applies to expenses paid for programs starting after the law is enacted, increasing access to funds for career education.
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Additional Information
American Workforce Empowerment Act
Print number: S 2921
Sponsor: Sen. Marshall, Roger [R-KS]
Process start date: 2023-09-26