Have you heard? The U.S. Freedom to Invest in Tomorrow’s Workforce Act just transformed 529 plans from college-only savings accounts into flexible career development tools. So what does this mean for you? This change means your U.S.-based members can now use their 529 funds for professional certifications, licenses, and credentialing programs.
Quick refresher: What’s a 529 plan? These are tax-advantaged savings accounts that have traditionally been used to save for college expenses. The money grows tax-free, and withdrawals aren’t taxed when used for qualified education expenses. Anyone can open one and name anyone as a beneficiary—including themselves.* Until now, they’ve been primarily used for tuition, room and board, and other college costs. But that just changed in a major way.
If you’re wondering how this affects your association, here are five ways this law creates new opportunities to support your members:
- Remove a Major Financial Barrier
Between exam fees, prep courses, continuing education, and study materials, the costs of certification can add up quickly. Now your members can tap into tax-advantaged 529 savings they may have already set aside. This makes professional credentials more financially accessible, especially for career changers or those investing in their own development.
- Become the Go-To Resource
Your members need to know this option exists—and most don’t yet. Associations are uniquely positioned to spread the word through newsletters, social media, webinars, and member communications. By helping members understand how to use 529 funds for your certification programs, you’re adding immediate, tangible value to membership.
- Market Your Programs More Competitively
If your certification qualifies under the new law (and chances are it does if it’s state-recognized, included in military COOL directories, or accredited by organizations like the Institute for Credentialing Excellence and National Commission on Certifying Agencies), that’s a marketing advantage. You can promote that exam fees, prep courses, and continuing education expenses can be funded through 529 plans. This positions your programs as smart, strategic investments.
- Attract New Audiences
This expansion opens doors to demographics who might not have considered your programs before—parents who set up 529s for their kids who chose different paths, mid-career professionals with unused education savings, or individuals planning long-term career pivots. These are potential new members and certification candidates who now have a funding path.
- Support Lifelong Learning
Professional development doesn’t stop after one certification. The law also covers continuing education required to maintain credentials, which aligns perfectly with associations’ missions around lifelong learning. This could create the opportunity for members to tap into a sustainable funding model they already have access to, to stay current throughout their careers—and stay engaged with your association.
What Should Associations Do Now?
Start by confirming your credentials and programs qualify under the new rules. Most state-recognized licenses, nationally accredited certifications, and WIOA-approved programs are automatically eligible. Then communicate this benefit clearly to your members and promote it in your marketing materials.
This law isn’t just about taxes—it’s about making professional growth more achievable. Associations that help their members understand and access these benefits will strengthen their value proposition while advancing their mission to develop skilled, credentialed professionals.
Looking for more information on 529 plans or this new law? The Professional Certification Coalition offers resources to help associations navigate the details at profcertcoalition.org.
*Note: most 529 plans require the account holder to be a U.S. citizen or legal resident with a Social Security Number.
