By: Julie Harvey, EA, CAA, NTPI Fellow

Most taxpayers think of 529 savings plan as a way to fund a child’s college tuition. But the definition of “qualified education expenses” has grown far beyond the traditional four-year degree. Thanks to legislative changes in recent years – and especially the One Big Beautiful Bill Act (OBBB Act) of 2025 – 529 funds can now support a much wider range of career-oriented education.

This broader view has given rise to the idea of a “529 Career Savings Plan.” The concept is simple: education does not always mean a college campus.

More Americans are using 529 plans to support career-driven goals. For aspiring Enrolled Agents (EAs), this creates an important opportunity: tax-advantaged dollars can help fund the coursework, testing, and continuing education that lead and support a respected, federally recognized career path.

529 savings plans do not just open the doors of the classroom; they open the doors of professional opportunity. For the tax profession, and the public we serve, that is a double win.

529 Savings Plan in Brief

A 529 savings plan, or QTP (Qualified Tuition Program), is a state-sponsored, tax-advantaged savings plan created under IRC §529. Contributions are made with after-tax dollars, but earnings grow tax-free and withdrawals are also tax-free if used for qualified education expenses.

Because 529 plans are state-sponsored, the investment options, deductions, and withdrawal rules vary by state. Some states offer a state income tax deduction for contributions, others do not.

Families can open multiple 529 accounts, in multiple states. And the funds are invested in the markets, often with “age-based” portfolios that automatically adjust from growth-oriented to conservative allocations as the beneficiary approaches college age.

One often-overlooked feature of 529 plan is the ability to change beneficiaries. If the original beneficiary receives a full scholarship or chooses not to pursue higher education, the plan owner can change the account to another family member, even to themselves. This flexibility makes the 529 plan a powerful tool for career development later in life.

Before making withdrawals, it is essential to review your plan details and consult your tax professional or financial advisor to understand both federal and state-level tax consequences.

Expanding the Definition of Education

Qualified uses of 529 funds have expanded significantly in the past decade:

  • Up to $10,000 per year (now increasing to $20,000 after 2025) for K-12 tuition.
  • Certain apprenticeship program costs (if registered with the Department of Labor).
  • Student loan repayment, up to $10,000 lifetime per beneficiary.
  • Computers, internet access, and related technology if used primarily for education.

The OBBB Act (effective for distributions after July 4, 2025) adds even more flexibility:

  • Credentialing & Licensure: 529 funds can now be used for tuition, fees, books, supplies, and equipment needed for a recognized postsecondary credential program.
  • Testing Fees: Exam fees required to obtain or maintain a recognized credential are now eligible.
  • Continuing Education: CE fees required to maintain a credential also qualify.

Recognized credential programs include those listed under the Workforce Innovation and Opportunity Act (WIOA) state lists, the VA’s WEAMS directory, or exams/credentials widely recognized as reputable in a profession. Occupational and professional licenses issued by state or federal government are also included.

This is a major shift: career credentials, including professional exams and CE, are now squarely part of the 529 landscape.

Career Credentials Beyond College

In today’s rapidly evolving job market, flexibility is a necessity.

A growing number of individuals are turning to certifications, licenses, and professional designations that offer a direct and cost-effective route into rewarding careers. These options are particularly appealing to career changers, working parents, and young professionals seeking advancement without the time or expense of a full degree.

How 529 Funds Can Help Future of Enrolled Agents

The OBBB Act (2025) expands 529 uses to include exam fees and continuing education, but only when tied to a “recognized credential.” The Enrolled Agent credential fits this definition:

  • EAs are licensed directly by the U.S. Department of the Treasury (31 C.F.R. Part 10), making it a federally recognized professional license.
  • Test fees: With the OBBB Act, 529 funds may now cover exam fees required to obtain a recognized credential. The Special Enrollment Examination (SEE), required for EA status, should therefore qualify as a 529-eligible testing fee.
  • Coursework: Many aspiring EAs strengthen their tax knowledge through classes in accounting, taxation, or business at accredited institutions. These costs clearly qualify as 529 eligible expenses.
  • Continuing education (CE): EAs must complete annual continuing education to maintain their credential. Under the OBBB Act, these CE fees also qualify as 529 expenses, provided the provider or program meets the requirements.
  • This means that families who have diligently saved in a 529 but find a child does not use the funds for college, still have a powerful way to redirect those dollars to a professional, career-building future in taxation.

 

Case Study: A Family Pivot

To illustrate, consider a real-world example. Years ago, a relative of mine opened a 529 plan for his daughter, Bella. Family members contributed generously, and the account grew. Today, Bella is 24, thriving in her own career path. She didn’t need her 529 funds for college.

Rather than let the account sit unused, her father changed the beneficiary to himself. With his long-standing interest in taxes, he decided to change careers. He now works part-time at a friend’s tax preparation firm while taking accredited tax courses funded by the 529 plan. Immediate plan to pass the EA exam and join the ranks of federally licensed tax professionals is in his reach. His ultimate goal? To become a partner in a growing tax practice.

Under the new OBBB Act rules, even his exam fees and required CE credits may now qualify.

This is the flexibility Congress envisioned: tax-advantaged dollars saved for education did not go to waste, instead they were repurposed for meaningful career change.

Steps for Getting Started

If you are considering using 529 funds for a nontraditional career path such as becoming an Enrolled Agent, here are some key steps:

  1. Review your state’s plan rules. State-sponsored plans vary in investment options, deductions, and withdrawal rules. Speak with your plan administrator to ensure your intended coursework, exam, or CE program qualifies.
  2. Check credential recognition. Verify whether your program or exam falls under the new OBBB Act definitions. The EA credential qualifies as a federally recognized license under Treasury regulations, which means the Special Enrollment Examination (SEE) and required CE should be eligible. Always confirm with your 529 savings plan administrator before withdrawing funds.
  3. Coordinate with a professional. Consult a tax professional to understand the federal and state tax implications of withdrawals.
  4. Plan for CE. Under the OBBB Act, EA exam fees and required continuing education should qualify as 529-eligible expenses.
  5. Connect with NAEA. Once you decide to begin the EA journey, join the National Association of Enrolled Agents for education, networking, and community support.

Conclusion

The shift from “college savings” to “career savings” represents a meaningful evolution in how families plan. For aspiring Enrolled Agents, it creates an important opportunity: 529 savings plan dollars can now be redirected from traditional degrees to career-focused education, testing, and continuing education that leads to a respected, federally licensed credential.

As an EA myself, I have seen how this career can transform lives. Whether you are just starting out or pivoting mid-career, the EA path offers credibility, flexibility, and lasting opportunity.

The National Association of Enrolled Agents (NAEA) is proud to support this journey, offering continuing education, advocacy, and community for aspiring and credentialed EAs alike. With 529 career savings plans and the EA credential working together, the path to a brighter professional future is within reach.

 

About the Author

Julie Harvey, EA, CAA, NTPI Fellow, is the founder of My US Tax Advisor LLC, where she focuses on international and cross-border tax compliance. She works extensively with clients who hold foreign accounts, pensions, investments, or businesses abroad, and she advocates for simplification of international tax reporting through her thought-leadership and policy work. When not working with clients, Julie contributes to professional associations and mentors aspiring EAs.