After Graduation
You may pay for credentialing expenses or occupational licensing from a 529 account, throughout your career.
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, Mr. Smith must renew his state bar license. He must recredential in his law subspecialty with testing every 10 years. Mr. 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.
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.