529 Plans for Adults
529 savings plans can be used for more than college! Learn how you can take advantage of 529 plans as an adult and build a safety net for whatever your future holds.
Key Takeaways
- 529 savings plans are tax-advantaged accounts that can be used on a wide variety of education expenses.
- Originally for college savings, 529s can now also be used on K-12, trade school, CEUs, licensure, and workforce education.
- Funds in 529 plans can be rolled over to ABLE accounts or Roth IRAs. You can also pass your account down to a relative.
- Don’t forget to plan how you’ll build it up. Asking for contributions through crowdfunding and employer benefits can help you reach your savings goals.
529 college savings plans are no longer just for college – they’re now a good option for pretty much anyone planning to enter the workforce or currently in it.
What makes 529 accounts so special?
- Withdraw tax-free when used on qualified expenses
- Rollover funds to Roth IRA or ABLE accounts when needed
- Receive contributions easily from loved ones
- Open an account for anyone – including yourself!
529s are great, but they only work if you can build your savings. Make sure to create a monthly (or yearly) savings goal and a plan to reach it if you open a 529. Crowdfunding with your community and asking your employer for contributions as an employee benefit can help you reach your goals.
Thanks to the recently expanded uses for 529 plans, more people can take advantage of them. Let’s get into all the ways 529s are great for adults, even if you’re well-past college and currently childless.
How Adults Can Use 529 Plans
1. Continuing Education
Ever needed to complete continuing education credits (CEUs) or wanted a certification your employer doesn’t pay for? You can use 529 funds for that! Job-related education is now covered under 529 eligible expenses, so you can boost your skills without breaking the bank.
2. Licensure Fees
Depending on your job, you may have to register for licensure and renew it periodically, which can get expensive. Luckily, 529s now help you cover those costs if your employer doesn’t. Whether it’s the initial exam, CEUs, or renewal fees, you can use your 529 savings on staying compliant.
3. Preparing for a Career Change
Sometimes you need a change – having a 529 gives you room to do it when you’re ready. Whether that’s earning a new certificate, learning a trade, or getting a degree, you can use 529 savings to help you make your next move.
4. Disability Support
529A, better known as an Achieving a Better Life Experience (ABLE) account, lets you put funds toward living expenses tax-free if you have a registered disability that started before the age of 26 (expanding to 46 in 2026). 529 funds can rollover to ABLE if needed, giving you extra savings you might not realize you need until it’s too late.
5. Retirement
Don’t end up using your 529 savings? No worries, you can rollover up to $35k to your Roth Individual Retirement Account (IRA). The money will never be wasted – you can always put it toward living comfortably in your later years.
6. Supporting Future Generations
If you’re feeling generous, you can always change the beneficiary of your 529 to someone in your family, like a child, grandchild, niece, or nephew. This gives them all the options you kept open for yourself and lets you contribute to their future in a meaningful way.
And if you die before giving the account to someone else? The money will go to whoever you named as a beneficiary.
529s are for (almost) anyone!
The expanded uses for 529s make them a great option for a lot more people! From parents to childless adults, new graduates to seasoned workers, 529 savings plans can be a much-needed safety net for your future.
The most important thing to consider is how you’re going to build it up. Create a monthly savings goal, crowdfund your 529, and ask your employer for contributions – you’ll be saving for whatever your future holds in no time.
Samantha Park
Samantha Park is a writer with a background in public service work. She recently earned a M.S. in Professional Writing from Towson University where she focused on writing for the private and public sectors, and has previously graduated with an A.A. in Psychology from Anne Arundel Community College and a B.A. in Sociology from the University of Maryland College Park. Samantha has worked within and alongside the public sector for the past decade and cares deeply about empowering marginalized youth, expanding access to opportunity through education, and increasing community involvement.
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