#103 · AL · 110 · Student Finance & Debt
Identify which of your education expenses qualify for tax-free 529 withdrawal under OBBBA 2025 — including new trade, professional exam, and CPE categories — and model contributions to maximize your tax advantage.
The following are newly qualified starting July 1, 2026: CDL & commercial vocational programs · HVAC, welding, electrician, plumbing training · CPA exam fees · Bar exam fees · NCLEX and professional licensing exams · State/professional license renewal fees · CPE/CE credits · Registered apprenticeship programs · K-12 tuition up to $20,000/yr (was $10k)
| Expense | Pre-OBBBA | OBBBA 2025 | Amount | Tax Savings |
|---|
529 plans offer two tax advantages: (1) Federal tax-free growth — earnings are not taxed when withdrawn for qualified expenses, and (2) State tax deduction on contributions (in states that offer it). OBBBA 2025 significantly expands what counts as "qualified" — making 529s useful for career-long professional development, not just traditional college.
Key rules: No income limits to contribute. No annual contribution limit (gift tax limits apply). Most states: deduct contributions up to $10k–$20k/yr. Non-qualified withdrawals incur income tax + 10% penalty on the earnings portion.
Unused 529 funds: Can be rolled to a Roth IRA (up to $35k lifetime, ≥15 yr account age, per SECURE 2.0). Can be transferred to another family member. Or held for future qualified spending.
| Year | Contributed | Growth | Balance | State Deduction Savings |
|---|
Paste a Policy Mandate from another Apex Logics tool to pre-fill goal and funding inputs.