You may pay for your Credentialing expenses or your occupational licensing through a 529 account, including years after graduation.
The 529 account can pay for classes and programs to help people switch careers or grow in their field. Workers may need to tap these resources as they face layoffs or job transitions or just need to upgrade their skills.
Funds must be used for credentials, licenses, and programs from authorized agencies and organizations.
Every 2 years, Dr. Smith must renew his physician license. He must recredential in his specialty with significant testing every 10 years. Dr. Smith keeps his 529 account open for these expenses.
I need to change careers.
My son has a 529 account that he is not using for a while.
As the owner, I change the beneficiary to myself, take the credentialing course paid for by his 529 money, get a new job with my new credentials, then change the beneficiary back to my son, all without taxes or fees in most states.
*In Utah's my529 plan, if you did not start your own account before your age of 19, there are likely some state tax fees on earnings to repay.
No statement or example on this site should be considered a specific recommendation for your personal situation. Investing and tax strategies each carry significant risks. Examples herein may not apply to your situation. Please consult your estate attorney, tax advisor, or financial advisor for personal advice.