Short answer: since July 4, 2025, 529 plans can pay for more than college. Under the One Big Beautiful Bill Act, money in a 529 can now cover tuition and fees for a recognized credential program, the exam fees to earn or keep a recognized credential, and continuing education that's required to keep it. So if your association runs an accredited certification, or offers CE that licensed professionals need for renewal, some of your learners can now pay you out of a 529. The catch is the word "recognized." Not every program qualifies, and the IRS still hasn't spelled out everything.
I've had this question come up on a few calls with credentialing directors lately, usually phrased as "wait, can people really use their kid's college fund for our exam?" Sort of. It's the account owner's call who the beneficiary is, and plenty of adults are naming themselves now. What matters for you is whether your program sits inside one of the categories the law lists, and whether you're giving learners what they need to prove it.
Below is what the law covers, which credentials and programs count automatically, a short checklist to work out where your program stands, and the paperwork your learners will want from you.
Section 70414 of the One Big Beautiful Bill Act amended Section 529 of the Internal Revenue Code. It added a new category called qualified postsecondary credentialing expenses. That new category sits next to the usual college costs, so a withdrawal used for it gets the same tax treatment as a withdrawal for tuition at a university. The change applied right away to withdrawals after July 4, 2025.
Based on the summary the Professional Certification Coalition put together with ASAE and the Institute for Credentialing Excellence, three kinds of expenses are covered:
That third one is the line most associations care about. It isn't "any CE course." It's CE that a credential or license requires you to complete to keep it.
The law names several categories that qualify without anyone having to apply. If your credential falls in one of these, you're in a strong position:
| Category | Typical association example | Where to check |
|---|---|---|
| Certification from a program accredited by NCCA (I.C.E.) or ANSI | A specialty certification for nurses, safety professionals or financial planners | I.C.E. program verification lookup; ANSI accreditation directory |
| Occupational or professional license issued or recognized by a state or federal government | Physician, nurse, pharmacist, CPA or real estate licenses | The state licensing board |
| Certification required for an occupational or professional license | A certification a state board requires before it issues a license | The state licensing board's rules |
| Credentials in the Defense Department's COOL directories | Credentials service members pursue through Army, Navy or other COOL sites | cool.osd.mil |
| Registered apprenticeship completion certificates | Trades and some allied health apprenticeships | apprenticeship.gov |
The law also lets the Treasury, after consulting the Department of Labor, add other credentials it considers industry recognized. As of mid-2026, the College Savings Foundation was still asking the IRS to publish that guidance, and I.C.E. said the coalition was pushing for a five-factor test. So if your credential isn't accredited and isn't tied to a license, don't promise 529 eligibility yet. Say you're watching for IRS guidance.
If you've been on the fence about accreditation, this adds a practical reason to pursue it. Our post on NCCA accreditation for certification bodies walks through what it involves.
In many cases, yes. A state-issued license is a recognized postsecondary credential under the law, and CE fees count when that CE is required to maintain the credential. So a physician paying for CME that her state board requires for license renewal, or a CPA paying for CPE his board requires, looks like a fit on the face of the statute.
Where it gets fuzzy:
Your job here isn't to give tax advice. It's to state plainly what your program is, what it's required for, and to hand learners clean records. Then they and their tax preparer can make the call.
Program costs (tuition, prep courses, books) qualify when the program itself is a recognized postsecondary credential program. Per the PCC summary, a program qualifies if any of these is true:
Getting onto a state WIOA eligible training provider list is a real project. It goes state by state through the local workforce board, and you'll usually need to report outcomes like completion and employment. For most associations, the exam-prep route is the faster win if your certification is already accredited.
Run each of your programs through these questions. Write the answers down, because you'll reuse them on your catalog pages.
The PCC FAQ notes that many plans reimburse the account owner after the fact, and some ask the owner to attest that the withdrawal covered a qualified expense. Learners are told to keep receipts in case of an audit. That means they'll come to you for paperwork, sometimes a year later at tax time.
For each purchase, a learner should be able to get:
If you're on OasisLMS, much of this is already there. You can attach a PDF receipt to the course purchase confirmation email and put your logo on it, and the receipt template can be edited to add a line describing the program. Learner transcripts show completions and credits, and the Purchase Report lets your team re-pull a purchase if someone loses the email. One thing to watch: if you sell CE inside a bundle or a subscription, consider listing the required-CE portion as its own line item so the receipt tells a clean story.
Carefully, and in plain words. A short, accurate statement beats a big claim you have to walk back. Here's a template you can adapt for an email or a catalog banner, once your adviser signs off:
"Saving in a 529 plan? Under a 2025 federal law, 529 funds may be used for exam fees and required continuing education for recognized credentials, including [Credential Name], which is accredited by [NCCA/ANSI]. Eligibility depends on your situation and your plan, so check with your plan administrator or tax adviser. Your receipt and transcript are available any time in your learner account."
Put a version of that on the course pages themselves too, next to price and credits. People searching "can I use a 529 for my certification exam" want to see it right where they buy. If you're building out your association credential programs, this belongs in the launch plan, and it's worth mentioning in your certification maintenance reminders too, since renewal is when CE spending happens.
Yes, if the exam is required to obtain or maintain a recognized postsecondary credential. Certifications from NCCA- or ANSI-accredited programs and certifications required for a state license are named in the law. Others may qualify later under IRS guidance.
No. CE fees count only when the education is required to maintain a recognized postsecondary credential. Elective courses beyond the requirement, or CE for a credential that isn't recognized, may not qualify.
It applies to qualified withdrawals made after July 4, 2025, the date the One Big Beautiful Bill Act was signed. State tax treatment and plan procedures vary, so learners should check with their own plan.
No registration is required for credentials that already fall in the named categories. Programs that want WIOA eligibility apply through their state workforce system. Credentials outside those categories are waiting on further Treasury and IRS guidance.
You can describe the facts, such as your accreditation and which licenses require your CE, and point to the law. Have your legal or tax adviser review the exact wording, and avoid promising any learner a particular tax outcome.
529 eligibility gives associations with accredited certifications, or CE tied to licenses, a new way to make education feel affordable. The opportunity isn't the funding source by itself. It's being the organization that explains it clearly and hands learners clean records. Check where each program stands, tighten up receipts and transcripts, and say only what you can back up. If you'd like to see how OasisLMS handles receipts, transcripts and credential tracking for certification bodies, book a demo and we'll walk through it with your own programs in mind. You can also see our online assessment platform if exam delivery is part of the picture.
This post is general information, not tax or legal advice. Sources: the Professional Certification Coalition's FAQ on the 529 expansion, the Institute for Credentialing Excellence's 529 resource page, and the College Savings Foundation's June 2026 letter to the IRS.
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