529 Plans: More Flexible Than Ever

Presented by Axial Financial Group. Published Sept. 16, 2025

Saving for education has always been a top priority for families, and 529 plans have long been one of the most popular tools to make that possible. These tax-advantaged accounts were originally designed to help cover college costs—but the rules have changed in recent years, making them more versatile than ever.

Here’s a look at what 529 plans can be used for today.

Covering the Basics: College and Beyond

Traditionally, 529 plans were meant to pay for college expenses, such as:

Tuition and fees
Room and board for students enrolled at least half-time
Books, supplies, and required equipment
Computers and internet access (if needed for coursework)

The best part? These funds can be used at most accredited colleges and universities in the U.S.—and even many schools abroad.

Helping with K–12 Tuition

529 plans aren’t just for college anymore. Families can now use up to $10,000 per year, per student for tuition at K–12 public, private, or religious schools. This can provide welcome flexibility for parents looking to invest in their child’s education earlier.

Paying Down Student Loans

Another exciting change: 529 funds can now help with student loan debt. A beneficiary can use up to $10,000 (lifetime limit) to repay their own student loans. Plus, each sibling of the beneficiary can also use up to $10,000 for their own loans.

Funding Apprenticeships and Trade Programs

Not every student’s path includes a four-year college. 529 plans can also be used to pay for expenses related to registered apprenticeship programs, including books, fees, and required equipment. This makes 529 savings a great option for those pursuing skilled trades.

Rolling Over to a Roth IRA

Starting in 2024, unused 529 funds can be rolled into a Roth IRA for the beneficiary, with a lifetime cap of $35,000. This rollover option provides a safety net—if your child doesn’t need all of their 529 funds for education, the money can still be used to jump-start their retirement savings.

Why This Matters for Families

These updates make 529 plans more flexible than ever. Whether your family is planning for college, private school, vocational training, or even future retirement savings, a 529 plan can adapt to support those goals.

At the same time, every state has its own rules, and tax implications can vary. That’s why it’s always best to talk with a financial professional before making contributions or withdrawals.

✅ Bottom line: A 529 plan is no longer just a “college savings account.” It’s a versatile tool that can help your family prepare for education costs and beyond.

This content was created using generative artificial intelligence. Output used in this material has been verified by the author/advisor.