Article

When people hear “529 account,” they often think of saving for their child’s college tuition. But did you know that you can open and use a 529 account for yourself?

Whether you're planning a career shift, finishing a degree you started years ago or building new skills through a certification or licensing program, a 529 account could be a smart, flexible way to save. Still, there are a lot of myths and misunderstandings about using a 529 plan as an adult.

 

Myth 1: “529 accounts are just for kids.”

Reality: Anyone can use a 529 account for their own qualified education expenses.

529 accounts were created to make education more accessible. Whether you're enrolling in a university, taking community college classes, starting a graduate program, attending a trade school or pursuing a credential or licensing program, your 529 account can help cover the costs.

As the account owner, you can name yourself as the beneficiary (student) and use the funds when you're ready. There are more than 20 investment portfolios to choose from, a number of which can potentially help your funds grow in the short term.

 

Myth 2: “I’m too old to go back to school, so it’s too late to open a 529.”

Reality: There’s no age limit for learning—or for using a 529 account.

Your funds can be used at any time in life. Whether you go back to school in your 30s, 40s, 60s or beyond, your 529 savings can cover a number of expenses, including:

• Tuition and fees
• Required books and supplies
• Computers and equipment

You can also use your savings at thousands of eligible schools in the U.S. and abroad.

 

Myth 3: “I’m not going to a four-year college, so a 529 account isn’t right for me.”

Reality: 529 accounts cover much more than traditional college tuition.

They are flexible, and the approved uses have expanded in recent years. A 529 account can be used for:

• Community colleges and technical schools
• Registered apprenticeships

Also, starting with withdrawals made after July 4, 2025:

• Industry-recognized credentials and professional licenses
• Continuing education to maintain certifications
• Credential programs approved under state or federal standards
• Online education and short-term training programs

Want to become an HVAC technician, truck driver, project manager or IT support specialist? Many of these career paths involve programs that qualify under the expanded 529 guidelines.

 

Myth 4: “I’ll lose my money if I don’t finish school.”

Reality: You have options, even if your plans change.

If you don’t use the funds for your own education, you can:

• Change the beneficiary (student) to another qualifying family member
• Roll over up to $35,000 (lifetime limit) into a Roth IRA for yourself (if you’re eligible)
• Keep the funds in your account

The earnings portion of non-qualified withdrawals is subject to income tax and a 10% penalty. Your original contributions are always yours. Be sure to consult a tax professional or financial advisor to understand how a withdrawal may affect your individual situation.

 

Myth 5: “Opening a 529 account is complicated.”

Reality: It’s easy to get started, and you don’t need a lot to begin.

Opening a 529 account typically takes just a few minutes online. Most plans (like Invest529) allow you to start with $10. You can contribute what you can, when you can—and take advantage of tax-free growth when used for qualified education expenses. Some states offer income tax deductions for contributions to a 529 account. Check your state's rules to see if you're eligible.

Some plans even offer gifting options, so family and friends can support your goals, too.

 

A Smart Way to Invest in You

Whether you're earning a certification, learning a trade, or starting a new chapter, a 529 account can help you take that next step. These accounts are flexible, and can support your personal and professional goals, even if you're decades past high school.

It’s never too late to invest in yourself. And with a 529 account, you don’t have to do it alone.