As the school year begins and families settle into those old familiar fall routines, it’s the perfect moment to revisit how you’re funding your children's future education—especially now that major changes to 529 plans are turning these accounts into ever more powerful tools.
What’s Changed (Thanks to the "One Big Beautiful Bill" Act)
Signed into law in July 2025, the sweeping One Big Beautiful Bill Act (H.R. 1) has transformed 529 plans with some game‑changing updates. So as backpacks fill and pencils are sharpened, here’s how these new updates can shape your financial decisions in the school year ahead.
K–12 education just got way more flexible.
These updates include the annual tax‑free withdrawal limit doubling from $10,000 to $20,000, starting in tax year 2026. Plus, qualified expenses now include books, curriculum, online learning materials, tutoring, standardized test fees (like SAT, ACT, AP), dual‑enrollment, and educational therapy such as speech-language, occupational, and behavioral support.
Post–high school and career learning just got in scope. 529 funds can now go toward apprenticeship costs (enrollment fees, tools, equipment) and certificate or credential programs recognized under entities like the Workforce Innovation and Opportunity Act or formal licensing bodies. In addition, supporting lifelong learning and career pivots, the IRS confirms that these funds may also be used for professional licensing and exam prep—think CPA, bar exam, IT certifications, trade school credentials.
A powerful new initiative: “MAGA” accounts for minorsCheck out the full article and source information from Fidelity to read more.
Have questions about how these insights and ideas could impact your personalized wealth management strategy? Let’s talk.
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