529 Plans: Smarter Savings, Bigger Impact

1. Start with the Basics: What Is a 529 Plan? 

New to the idea of a 529? This quick explainer breaks down how these plans work, what makes them tax-advantaged, and why they’re such a powerful tool for families planning for the future. 

• Read: What Is a 529 Plan? 

2. What Can You Actually Use 529 Funds For? 

The answer: more than just college tuition. These two articles cover the full (and growing!) list of qualified education expenses.

• Read: Full list of eligible expenses 
  
• Read: 529 to Roth IRA rollover explained 

3. Who Should Own the 529 Account, Parents or Grandparents? 

Ownership matters, especially when it comes to financial aid and control. This guide helps families decide who should open the account and why that choice could affect future planning. 

• Read: Grandparents vs. Parents – Who Should Own the 529? 

4. Why Employers Are Getting Involved 

529 contributions are gaining momentum as a meaningful benefit, especially among employers who want to support working parents, attract early-career talent, or offer family-friendly perks. 

• Read: Why Employers Are Offering 529 Plans 

5. What’s Next for 529 Plans? More Flexibility, More Access 

The future of 529 plans is brighter – and broader – than ever. Policymakers are increasingly recognizing how critical it is to modernize education savings accounts for today’s workforce. These new proposals and legislative efforts are pushing to make 529s more inclusive, flexible, and responsive to real-world learning paths. 

Here are the latest developments: 

Klobuchar’s Bill to Cover Skills Training & Certification 

Sen. Amy Klobuchar’s legislation proposes expanding 529 qualified expenses to include workforce training programs, short-term credentialing, and professional certifications. These proposed expansions make these accounts more useful for adults reskilling, mid-career changers, and those pursuing nontraditional education. 

• Why it matters: This change would make 529s far more relevant in today’s job market, where flexible learning and rapid upskilling are critical. 

Senate Proposal to Expand 529 Qualified Expenses 

This proposal from the Senate seeks to include more types of educational programs (especially career-focused and employer-sponsored training) as eligible uses of 529 funds. The move is designed to align education savings with the needs of modern learners and working adults. 

• Why it matters: It reflects growing bipartisan interest in ensuring that education savings plans support all forms of education, not just four-year degrees. 

House Committee Draft: More Adult-Friendly 529 Flexibility 

The House Ways and Means Committee’s One, Big, Beautiful Bill outlines potential updates that would give more adults the ability to use 529 funds for job training, workforce reentry, and even certain employer-led development programs. While still in draft form, this signals a wider shift toward inclusive financial planning tools. 

• Why it matters: This could create even more employer-led opportunities for employees to invest in professional development tax-free, with direct alignment to retention and workforce readiness goals. 

Big Picture: 529 Plans Are Evolving 

Today’s 529 plans aren’t just for college-bound teens. These policy shifts signal a major transformation and opens the door for adults, tradespeople, and upskillers to benefit, too. With expanded use cases, easier rollovers, and increasing employer interest, 529s are fast becoming one of the most future-ready benefits available. 

Let’s Celebrate Smarter Savings 

529s aren’t just for parents planning for college. They’re for grandparents, early-career professionals, tradespeople, and anyone investing in lifelong learning. Whether you’re opening your first account or launching a workplace benefit, it’s a great time to act. 

Need help getting started? SavvyFi makes 529 plans simple for employers to offer. No payroll integration or long setup required.