


For years, 529 accounts were synonymous with college savings plans. But recent updates have given the accounts a makeover.
“They’ve become education savings accounts, not just college savings accounts,” said Andrea Feirstein, a 529 consultant.
The latest change, included in the budget and policy legislation passed by Congress this month, allows the accounts to be used to help pay for a broader range of post-high school credentials, like certification in specialties like auto mechanics or food safety, and related expenses.
The shift recognizes that some students may want to further their education after high school in a different way, Ms. Feirstein said. “The route to a successful career does not have to take you through college.”
And adults who have been in the work force for a while may want to pursue different careers that call for retraining. “It just provides opportunities to everybody,” said Mary Morris, chief executive of Virginia’s Commonwealth Savers program and chair of the College Savings Plans Network, a group that promotes 529 plans.
The law also expanded what elementary and high school expenses can be paid for with a 529.
“This is a very significant development,” said Jordan Lee, chief executive of Saving for College, a website owned by the financial technology company Backer that provides information about 529 plans, adding that the changes help meet “more diversified needs of families.”