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The landscape of education and career training is evolving, and so are the ways you can leverage your 529 savings. Recent changes to 529 accounts have unlocked new opportunities, allowing you to invest in a broader range of educational and professional development programs. Starting with withdrawals made after July 4, 2025, you can use your 529 account to pay for expenses related to eligible postsecondary credentials and credential programs, including those needed to obtain or maintain professional licenses. Related: https://www.invest529.com/articles-webinars/big-changes-for-529-savers-what-you-need-to-know-about-expanded-uses/

Whether you're looking to enhance your skills, pursue a new career path, or support a loved one's educational journey, here’s a guide to help navigate some new ways to make the most of your 529 savings.

 

1. Credentials and Programs Authorized Under the Workforce Innovation and Opportunity Act (WIOA) 

What it is: WIOA is a federal law that directed states to maintain a list of approved training programs and credentials aimed at enhancing workforce skills. These programs help individuals gain the skills needed for employment in high-demand industries.

How to use it: Each state maintains an Eligible Training Provider List for WIOA-approved programs. To find approved training providers in Virginia, visit the Virginia Workforce Connection, scroll down to “Resources and Services,” and click on “Training Providers.”

 

2. Certificates from Registered Apprenticeship Programs

What it is: Registered apprenticeship programs combine on-the-job training with classroom instruction, allowing individuals to earn a certificate while gaining practical experience in a specific trade or profession.

How to use it: You can use your 529 funds for certificates from these programs. For a list of national apprenticeship occupations, check out the National Apprenticeship List.

 

3. Licenses Issued or Recognized by a State or Federal Agency

What it is: These are professional licenses required to legally work in certain fields, such as healthcare, education, and trades. They are issued or recognized by state or federal agencies.

How to use it: Licenses will vary by state. For a snapshot of licenses available in Virginia, visit the Virginia Licenses List.

 

4. Credentials Approved by Select National Credentialing Entities

What it is: These credentials are recognized by national organizations that set industry standards. They validate an individual's expertise and skills in a specific area.

How to use it: Several national credentialing entities have approved credentials that can now be funded by 529 accounts, including:

• Institute for Credentialing Excellence
• National Commission on Certifying Agencies
• American National Standards Institute

 

5. Credentialing Opportunities On-Line (COOL) Credentials

What it is: The COOL program offers various credentials for military personnel and veterans, helping them translate their military experience into civilian qualifications.

How to use it: Explore the options available through the COOL program at COOL.

 

6. Web Enabled Approval Management System (WEAMS) Programs

What it is: WEAMS is a database of educational institutions and training programs that meet the standards set by the Department of Veterans Affairs. While it's designed to support veterans and their families using benefits like the GI Bill, many of the programs listed are also eligible for 529 funds and are open to all learners, not just veterans.

How to use it: You can search for approved institutions and programs on the WEAMS website.

 

What Expanded Uses of 529 Accounts Mean for Existing Account Owners

While saving in a 529 account has always offered significant benefits, including tax advantages, the recent changes have introduced several new ways to utilize these funds, providing even greater flexibility and opportunities for account owners. Related: What 529s Cover

Here’s what these expanded uses mean for you:

• Broader Educational Opportunities- This expansion allows you to invest in education that aligns with current job market demands, enhancing your or your beneficiary's employability and career prospects.
• Support for Apprenticeship Programs- This provides a practical pathway to gainful employment in skilled trades, offering an alternative to traditional college education.
• Coverage for Professional Licenses- This helps cover the costs associated with obtaining professional credentials, making it easier to enter or advance in regulated professions.
• Recognition of National Credentials- This allows you to pursue nationally recognized certifications that can enhance your professional qualifications and career opportunities.
• Military and Veteran Credentialing- This supports the transition from military to civilian careers by funding certifications that translate military experience into civilian job qualifications.
• Veteran Education Programs- This ensures that more savers, including veterans and their families, can use 529 funds to access quality education and training programs that meet VA standards.

 

Ready to Start Saving with a 529 Account?

If you're ready to take advantage of the expanded uses of 529 accounts, now is the perfect time to start saving. Open an Invest529 account today and begin investing in your future or your loved one's future.