The new 529 plan rules Gen Z lets you invest not only in college but also in careers

Change reflects the earthquake changes of education as a more generation’s za Avoid traditional 4 year degrees– and the result Student loan debt. Instead, many people are picking up trade skills Enjoy the benefits The creator economy.

Key Features and Recent Legislative Changes (2025):

• K-12 qualifying fees expanded: 529 accounts Previously limited to K-12 (up to $10,000 a year), it can be used for additional costs such as books, online educational materials, test fees (such as SAT/ACT), dual registration fees, instruction from a qualified professional, and educational therapy for students with disabilities.. The annual limit for all K-12 costs will rise to $20,000 from January 1, 2026.
• Wide range of secondary education and career use: In addition to traditional university and university costs, 529 funds can now be paid for adult learners and career changer qualification programs, including professional licences, certificates (including registered apprenticeships), and continuing education courses in areas such as auto repair and food safety.. Recognized qualifications include qualifications that are eligible for federal programs and military career advancement resources.
• 529-to-Roth IRA Rollover: The Secure 2.0 Act (valid since 2024) allows up to $35,000 to be rolled over to the beneficiary Roth IRA with 529 unused funds.. This allows families to avoid penalties for unused funds if the beneficiary does not need all 529 savings for education.
• Additional changes and flexibility: 529 funds can also apply to student loan repayments (up to certain limits) and pay K-12 and higher education fees across public, private, or religious institutions, supporting a broader range of personal education and development goals..

• 529 accounts now work as well as university savings planshowever, it can be adapted to a variety of academic and professional needs as a comprehensive educational savings tool.. This flexibility recognizes modern reality, such as students pursuing alternative post-secondary training paths and career shifting adults.
• These updates will be clearer Planning guarantees for families, especially those who may take non-traditional education or career routes.

• As rules regarding eligible costs, contribution restrictions, rollover restrictions, and state-level nuances may continue to apply, we strongly recommend that planners who will take advantage of these new perks consult a tax expert or financial advisor.
• Details on implementation of the extension (such as some effective dates and regulatory guidance) are still appearing as of July 2025.

In summary, 529 accounts have evolved into a versatile tax savings tool for many forms of education and career development..