Your Money Minute: The New 529 is More Than Just College Savings - The Candy Valentino Show

Summary3 min read

Episode Overview

Podcast: The Candy Valentino Show
Episode: Your Money Minute: The New 529 is More Than Just College Savings
Date: September 12, 2025
Host: Candy Valentino

In this concise Money Minute segment, Candy Valentino breaks down recent and impactful changes to the 529 savings plan, a popular vehicle for education savings. Traditionally seen as a way to save for college, the newly revamped 529 plan offers expanded flexibility, empowering families to maximize their investment for a range of educational and wealth-building opportunities.

Key Discussion Points & Insights

The 529 Plan’s Major Upgrade

Changing Perceptions
Candy opens by noting that most people think of the 529 plan strictly as a college savings account, but recent legislative changes—described as the "big beautiful bill"—have expanded its uses significantly.

Expanded K-12 Usage

Increased Cap for Pre-College Use
- Families can now use up to $20,000 for K-12 expenses—double the previous $10,000 limit.
- Applicable to private school tuition, tutoring, and even online educational programs.
- "First up, families can now use up to $20,000 for K through 12 expenses and that's double the $10,000 cap. So that's private tuition, tutoring and even online programs."
  —Candy Valentino [00:58]

More Qualified Expenses

Expanded Definitions of Educational Use
- The list of qualified expenses now includes books, exam fees, and, notably, services for children with disabilities, such as therapies and learning support.
- "Second, the list of qualified expenses just got bigger. You can use this for books, exam fees and for kids with disabilities, even for therapies and learning support."
  —Candy Valentino [01:14]

Beyond College: Career Training and Credentials

Career-Oriented Flexibility
- 529 funds are no longer just for college; they can be used for career training, trade schools, and credential programs—whether that’s aviation mechanics or taking the bar exam.
- "Third, 529s are not just for college anymore. You can use them for career training and credential programs. Whether that's a trade school, aviation mechanics or taking the bar exam."
  —Candy Valentino [01:29]

The Biggest Change: Investment Rollover Option

Roth IRA Rollover
- Under certain circumstances, unused 529 funds can now be rolled over into a Roth IRA, turning leftover education savings into an investment for retirement and amplifying their wealth-building potential.
- "And lastly, the biggest of them all, under certain circumstances, you can roll over unused money within the 529 into an investment account like the Roth IRA."
  —Candy Valentino [01:40]

Memorable Moments & Quotes

New Perspective on 529s

"Bottom line, call it what you want. This is a game changer for the 529. They are no longer just a college savings account. They are a wealth building tool giving your family more flexibility, more options and more control."
—Candy Valentino [01:48]

Timestamps for Important Segments

[00:42] Introduction and traditional view of the 529 plan
[00:58] Expanded K-12 spend cap
[01:14] New qualified expenses for books, exam fees, and special needs
[01:29] 529 plan for career training and credentials, not just college
[01:40] Roth IRA rollover for unused 529 funds
[01:48] Summary and Candy’s final perspective on 529 as a wealth-building tool

Episode Tone & Style

Candy's delivery is energetic and clear, aiming to empower listeners by making financial tools more accessible and actionable for a wide audience. The tone is upbeat, confidence-inspiring, and focused on practical wealth-building advice.

By demystifying the expanded 529 plan, Candy Valentino encourages listeners to view it not just as a means to fund college, but as a multi-purpose wealth and educational vehicle for the whole family.

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Transcript3 lines

[00:04]
A
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[00:43]
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Welcome back to your Money Minute. I'm Candy Valentino. You know, most of us think of the 529 plan as a college savings account. You put money in, it grows tax free and as long as you use it for college tuition, you won't get penalized. But the 529 just got a major upgrade when Congress passed the big beautiful bill. And regardless of what you think about the name, today we are talking to the changes that the 529 has had and they are big. First up, families can now use up to $20,000 for K through 12 expenses and that's double the $10,000 cap. So that's private tuition, tutoring and even online programs. Second, the list of qualified expenses just got bigger. You can use this for books, exam fees and for kids with disabilities, even for therapies and learning support. Third. Third, 529s are not just for college anymore. You can use them for career training and credential programs. Whether that's a trade school, aviation mechanics or taking the bar exam. And lastly, the biggest of them all, under certain circumstances, you can roll over unused money within the 529 into an investment account like the Roth IRA. Bottom line, call it what you want. This is a game changer for the 529. They are no longer just a college savings account. They are a wealth building tool giving you family more flexibility, more options and more control. I'm Candy Valentino and that's your Money Minute.
[02:11]
C
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