529 Fund-Use Has Broadened Significantly

529 funds can now be used tax-free for a wider variety of educational and career expenses. Key updates allow up to $20,000 per year for K-12 tuition, expanded K-12 expenses, career credentialing, and Roth IRA rollovers.

Qualified Higher Education Expenses

• Tuition and Fees: Covers tuition at eligible postsecondary institutions.

• Required Books & Supplies: Textbooks, lab equipment, and supplies required by the institution.

• Room and Board: Covered for students enrolled at least half-time (up to the school’s official cost of attendance allowance).

• Technology: Computers, peripheral equipment, and educational software used primarily by the beneficiary while enrolled.

K-12 Tuition & Expenses

• Tuition: Up to $20,000 per year per student can be withdrawn for tuition at public, private, or religious elementary and secondary schools.

• Expanded Expenses: Curriculum materials, tutoring, dual-enrollment tuition, standardized test fees (SAT, ACT), and educational therapies for students with disabilities. 

Career & Trade Education

• Vocational Schools: Tuition, fees, and books for recognized trade and vocational programs.

• Apprenticeships: Costs for apprenticeship programs registered with the Department of Labor.

• Professional Credentials: Costs for occupational or professional licenses, or continuing education required to maintain certifications (e.g., CPA, bar exams).

Student Loans & Rollovers

• Student Loan Repayment: Up to $10,000 (lifetime limit) can be used to pay down qualified student loan principal or interest for the beneficiary or their siblings.

• Roth IRA Rollovers: Up to $35,000 in unused 529 funds can be rolled over directly into a Roth IRA for the beneficiary over their lifetime (subject to annual contribution limits).