What are Postsecondary credentialing expenses?

Postsecondary credentialing expenses are costs paid for qualifying credentials, certification exams, licenses, continuing education, and approved skills programs. OBBBA Section 70414 adds these expenses to the list of 529 plan qualified higher education expenses for distributions made after July 4, 2025. Families should coordinate 529 withdrawals with Traditional 401k savings and other education funding decisions so credential training does not create avoidable taxable distributions.

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