The bipartisan, bicameral Freedom to Invest in Tomorrow’s Workforce Act (H.R. 2171 / S. 905) would expand eligible uses of tax-favorable “529” savings plans to cover costs associated with workforce training and credentialing programs.
The legislation would also enable 529 plan beneficiaries to use their funds to pay for examinations necessary to obtain and maintain recognized private professional certifications and other credentials.
Now, only costs related to attending colleges, universities, vocational schools, registered apprenticeship programs, K-12 private tuition, or other post-secondary institutions are eligible for 529 expenses.
These programs could encourage more people to enter the transportation sector; filling important roles in all modes and frontline positions.
What Can 529 Plans Be Used For?
Currently, 529 plans can only be used for college, graduate, or professional degrees; education programs from Title IV accredited institutions; registered apprenticeships; and certain K-12 tuition and student loan repayments.
Under the current regulations, 529 plan beneficiaries cannot use funds to obtain or maintain recognized postsecondary credentials, including professional certifications, licenses, and other valuable training or credentials.
“WTS International supports a diverse range of educational, training, and certification opportunities, and the Freedom to Invest in Tomorrow’s Workforce Act is a practical policy decision to ensure a robust, equitable, and diverse future of the transportation sector,” said Sara Stickler, president/CEO, WTS International. “The Coalition supports the use of 529 account funds to cover the diverse types of opportunities needed for future industry professionals to serve in vital roles building and maintaining the most critical transportation infrastructure in our communities.”