What Can You Use a 529 Plan For? More Than You Might Think

When most people hear “529 plan,” they think: college savings. And that’s true, these accounts were originally created to help families cover tuition.

But thanks to a series of law changes, 529 plans are now much more flexible. They can help with everything from student loans to career training and even retirement planning in some cases.

If you’re wondering what exactly you can (and can’t) do with your 529 plan, here’s a breakdown.

What is a 529 plan?

A 529 plan is a tax-advantaged savings account for education. You contribute after-tax dollars, the money grows tax-deferred and withdrawals are tax-free if used for qualified education expenses.

Many states also offer tax deductions or credits for contributions. Just keep in mind: since these plans are state-sponsored, the rules and benefits can vary.

If funds are used for something other than qualified expenses, earnings may be subject to taxes and penalties.

What are the new ways you can use 529 funds?

If you don’t use the funds for a typical four-year college degree, that’s okay. Here are some of the most useful options available today.

Roll over to a Roth IRA

Thanks to SECURE Act 2.0, up to $35,000 of leftover 529 funds can be rolled into a Roth IRA for the beneficiary, subject to certain conditions.

Pay off student loans

You can use up to $10,000 (lifetime per beneficiary) for student loan repayment, plus $10,000 for each sibling.

Cover K–12 tuition and expenses

Up to $10,000 per year can go toward private elementary or high school tuition (set to double to $20,000 in 2026, with more eligible expenses like tutoring and standardized tests).

Support disability expenses

You can roll funds into an ABLE account, which covers qualified disability-related expenses.

Pay for vocational school, apprenticeships and certifications

Community college, trade schools, apprenticeships and career credentials (like HVAC or aviation maintenance) can all qualify.

Technology and internet access

Computers, software and internet used for education can be covered.

Adult education

Parents can use leftover funds for their own retraining or continuing education.

Retirement learning

Seniors can even use 529 funds to take courses in retirement.

Gift contributions

Relatives can contribute as gifts. There’s even a special “superfunding” rule that allows large upfront contributions without gift tax consequences.

Looking for more ways to pay for college?

Download our guide: Saving for College: Financial Tools to Help Secure Your Student’s Future

How can an adviser help you make the most of a 529?

This is where professional guidance can make a difference. An adviser can help you coordinate your 529 savings with other strategies, such as retirement accounts or Roth IRAs, so everything works together. They can also show you how to use a 529 for multiple children or beneficiaries, making sure no money goes to waste.

Because state tax benefits vary, an adviser can navigate any advantages (and potential drawbacks) where you live. And importantly, they can point out opportunities you might otherwise miss, like using 529 funds for student loan repayment or rolling them into a Roth IRA.

The bottom line

A 529 isn’t just for traditional college savings anymore. It’s a versatile tool that can support a wide range of education paths and, in some cases, even help with debt repayment or retirement planning.

The flexibility is great, but the rules can be tricky. Every state has its own approach to tax treatment, contribution limits and qualified uses.

If you want to explore how to use a 529 for your goals, let’s talk.