Here are some lesser-known and creative ways to use a 529 account.

Earlier this month we outlined the basic concept and uses of a 529 savings account. We also discussed how the SECURE Act 2.0 made 529s work even harder and more aligned to changing family needs. For today, we felt it important, that we cover the lesser-known and more creative ways to maximize account benefits. (All totally legal, we promise!)

You may be thinking, 529s pay for college, I’m not sure my child will want to go to college, therefore 529 accounts are not for me! Our last post of the month will dig deeper into that thinking but for today, we wanted to provide you a few more angles to consider:

Did you know, you can use 529 plans to:

• Fund Study Abroad Programs?  You can cover expenses for study abroad programs, as long as the program is eligible for federal student aid.
  

• Cover Apprenticeship Costs: Funds can be used for fees, books, supplies, and equipment required for participation in registered apprenticeship programs
  

• Pay for Outward Bound Programs: Some 529 plans allow you to use funds for Outward Bound wilderness and leadership courses, which can be a unique educational experience!
  

• Support a Family Business: If a family member is starting a business and needs to take courses related to the business, 529 funds can be used to cover those educational expenses.
  

• Transfer to a Roth IRA: Provided the account have been open for at least 15years, any unused 529 funds can be rolled over to a Roth IRA for the beneficiary, up to a lifetime maximum of $35,000, providing a way to save for retirement.
  

• Pay for Special Needs Services: 529 funds can be used for special needs services required by the beneficiary in connection with their enrollment or attendance at an eligible educational institution.
  

• Cover Dual Enrollment Costs: High school students taking college courses can use 529 funds to cover the cost of dual enrollment programs.
  

• Fund a Gap Year: Some educational programs during a gap year may qualify for 529 funding, especially if they are part of an accredited institution.
  

• Use for K-12 Education: Up to $10,000 per year can be used for K-12 tuition at private, public, or religious schools.

These creative uses can help you maximize the benefits of your 529 account while supporting a wide range of educational goals. Even at the pace at which technology is changing the landscape, continued personal growth and education will always be a thing. Parents/Grandparents: If you are wondering if a 529 Account is still the best thing for your children? Check back next week, we have a blog post just for you!

PLEASE NOTE: 529 plans come with fees and expenses, and there is a risk they may lose money or underperform. Most states offer their own 529 programs, which may provide benefits exclusively for their residents. Please consider whether the state plan offers any tax or other benefits. Tax implications can vary significantly from state to state.