By: Erinne Perry, Professor of Accounting & Taxation, CPA, EA, CB and Public Notary

I once participated in a video advocating for financial aid, because had it not been for that support, I may not have finished school, or I would have been buried under far more debt. Unfortunately, my story is not unique. I grew up believing my parents had saved for college, yet I walked into school debt-free, finished my placement exam, and left with $7,000 in debt – and that was the beginning of my student loan journey. What I thought was security turned into a financial setback before my first class even began. It was not just about the money. It was the shock of realizing how quickly opportunity can turn into obligation when planning falls short.

Dr. Eric Thomas once said, “Knowledge is the new money.” Maybe my parents knew about 529 plans, but life happened, and though well-intentioned, it came down to a choice between saving for college or keeping food on the table. Or maybe they never knew about 529 plans at all. The truth is that many families fall into one of these two categories. They either know but assume it is out of reach, or they have never been introduced to the idea in the first place. Yet even a small start, as little as twenty-five dollars a month, can grow over time and make a meaningful difference. That is why both financial aid and smarter savings tools like 529 plans matter so deeply for the next generation.

With the passage of the One Big Beautiful Bill Act (OBBBA), tax law has finally caught up with reality! A 529 is no longer just a college fund, it has been redefined as a 529 career savings plan. A flexible tool designed to support education and training in many forms, from four-year universities to trade programs, certifications, or apprenticeships. Just as important, it now gives employers, even those outside the tax or finance industry, a practical way to invest in the financial wellness of their staff.

What Families Need to Know About 529 Plans

According to Kiplinger, “A 529 account is no longer just about saving for college, it’s about saving for opportunity, whatever educational path a child or adult chooses” (Kiplinger, 2025). For years, many parents hesitated to open these accounts because they worried their child might not take the traditional four-year college route. I admit that same concern kept me from investing at first. As a mother to a six-year-old, I understand how overwhelming it feels to plan for a future that is still unfolding. We want to do right by our children, but we hesitate, afraid that our choices might limit them.

The good news is that the One Big Beautiful Bill Act (OBBBA) has reshaped 529 plans to match the realities families face today. Beginning in 2026, families can use up to 20,000 dollars each year for K–12 expenses, including tuition, books, tutoring, test fees, and therapy for children with disabilities (Sandy Cove Advisors, 2025). The plans also extend beyond college by covering trade schools, apprenticeships, certifications, and licensing exams. If money is left over after education costs are paid, up to 35,000 dollars can be rolled into a Roth IRA, giving children a meaningful start toward retirement. For families raising children with disabilities, permanent rollover options into ABLE accounts provide long-term support.

As 529 plans become more flexible, parents feel more confident opening them without the fear that their savings might go unused. That peace of mind makes all the difference! The money we set aside today is not tied to just one outcome. It is a way to create possibilities, a foundation that opens doors for our children instead of limiting them.

But families are not the only ones who can play a role in this. Employers also have the ability to open doors by making 529 plans part of how they support employees.

How Employers Can Help Families Build the Future with 529 Plans

The truth is, financial stress does not just affect families at home, it follows them into the workplace. I know this firsthand. When I was struggling financially, it felt like baggage I carried everywhere I went, including on the job. Parents who are worried about tuition bills or how to prepare their children for the future often carry that same invisible weight. Employers have a unique opportunity to ease that burden while also building loyalty and trust.

The National Financial Educators Council notes that when employers support 529 savings, they are not only improving the financial wellness of their staff, but they are also helping shape the future workforce those families are raising (NFEC, 2025). That perspective captures the heart of why this change to the tax law matters. A small benefit offered today can ripple outward for years, touching not only employees but their children and even their grandchildren.

Supporting employees through 529 plans does not have to be complicated. In fact, small, practical steps can make a significant difference. Companies can offer payroll deductions so that employees can save automatically. They might add a modest match, even twenty-five dollars per paycheck to show they care about their people beyond the office. Or they can host a simple workshop with an Enrolled Agent, CPA or financial adviser, giving staff the chance to ask questions and see what is possible for their own families.

Financial wellness programs can improve employee loyalty and productivity. For employers, offering 529 support is not about creating an expensive new program. It is about giving employees peace of mind and, in return, building stronger retention, deeper loyalty, and better performance.

The same principle applies at home. Just as small steps from employers can ease financial stress in the workplace, small steps from families can build confidence and opportunity for the next generation.

Simple Steps to Get Started (Families)

  • Open an account. In New York, visit nysaves.org. Every state offers its own plan.
  • Start small. Even twenty-five dollars a month is enough to build momentum.
  • Use the tax break. New York allows a deduction of up to $5,000 for single, head of household, and married filing separate filers and $10,000 for married couples each year.
  • Invest based on timing. Choose conservative options if you need the money soon and growth-focused options if your timeline is longer.
  • Plan for leftovers. Remember that up to 35,000 dollars can roll into a Roth IRA if funds remain.
  • Talk to a professional. Enrolled agents, CPA’s and financial advisers can help you avoid mistakes, especially since state rules do not always match federal rules.

Simple Steps to Get Started (Employers)

  • Share information about 529 plans in newsletters or staff meetings.
  • Add payroll deduction options if your provider supports it.
  • Consider a modest matching contribution.
  • Partner with a financial professional to host a workshop or “lunch and learn.”

Why This Matters Now

As the saying goes, “There is no time like the present.” The best time to start preparing for the future is today. The future is not something we wait for — it is something we build. And with tools like the 529 plan, families and employers have the chance to start building that future right now.

What we do not know about money can cost us, but what we do know can set the next generation free. The One Big Beautiful Bill Act has reshaped the 529 from a narrow college fund into a true career savings account. It is flexible, practical, and powerful, giving families confidence in their planning and giving employers a straightforward way to invest in the people who make their organizations thrive!

Nelson Mandela reminded us that “Education is the most powerful weapon which you can use to change the world.” A 529 plan puts that idea into action. It turns small, consistent steps into long-term opportunity. Whether you are a parent preparing for your child’s future or an employer strengthening your team, the 529 plan is one of the clearest ways we can invest in what matters most, the future!

 

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About the Author

Erinne Perry has a B.S. in Public Accounting with a minor in Forensic Accounting, is a CPA, EA, and a Professor of Accounting & Taxation. Erinne launched her career in corporate tax, rising to Senior Tax Accountant. The work was demanding and rewarding, she realized that long-term fulfillment for her meant developing people, not just delivering results.

Today, Erinne is a full-time accounting instructor at Monroe University, translating real-world tax experience into practical lessons for the next generation. She credits Monroe’s internship requirement with giving her first exposure to tax work and still champions hands-on learning for her students.