Postsecondary Credentialing, Certificates, or Licensing expenses qualify.
Fees, books, supplies, and equipment required for a beneficiary’s credentialing expenses are valid uses of the 529 account funds. Expenses must be for an industry recognized qualified postsecondary credential program. Required credential renewal testing and continuing education fees should be qualified expenses throughout a former student’s career.
Industry recognition could be found at the Institute for Credentialing Excellence, the National Commission on Certifying Agencies, or the American National Standards Institute sites; or by inclusion in the Dept. of War COOL directory.
Fees, books, supplies and equipment costs also include postsecondary certificates, licenses, and job-skills programs. Check with your potential program to assure these are qualified expenses. Generally, if you can fill out a FAFSA application for a program, your chances are good.
Qualified expenses further include fees for obtaining an occupational or professional license issued or recognized by a state or the federal government.
Enlisted Private Jones is a Communications and Intelligence Specialist. She looked through the DOW COOL directory and found a Certified Analytics Professional-Expert credentialing opportunity that the GI bill will partially pay. Her 529 plan can supplement further for supplies needed. Renewal of certification is every 2 years, so she will over time want more funds as well.
Before he can apply for his job, Frank needs a state license. He can pay for testing or licensing fees with his 529 funds.
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.