New Uses For 529 Savings 6/12/26

Summary

Podcast Summary: Your Money Minute – "New Uses For 529 Savings" (6/12/26)

Main Theme

This episode of Your Money Minute, hosted by Jessica Ettinger, highlights new flexibility in 529 savings plans. Traditionally used for college savings, 529 plans can now cover a wider range of educational expenses, offering increased adaptability for career development and ongoing education—an especially timely update given rapid technological changes and workforce shifts.

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Key Discussion Points & Insights

• Expansion of 529 Plan Uses

  • Jessica Ettinger opens by stating that while parents typically use 529 plans for their child’s college education and benefit from tax-free investment growth, new rules broaden permissible uses.
    • Quote:

      "Parents use 529 plans to save for their child's education, investing and enjoying tax free growth. And now 529 plans are even more flexible."
      (Jessica Ettinger, 00:04)

• Broader Educational Applications

  • Sharon Epperson, CNBC personal finance correspondent, elaborates that 529 funds can now be withdrawn tax-free not only for tuition, but also:
    • Books and fees for credential or certificate programs
    • Testing fees for earning or maintaining licenses/certifications
    • Continuing education costs for renewing credentials
    • Quote:

      "Under new rules, you can now withdraw funds from a 529 account tax free for tuition, books and fees for credential programs, testing fees to earn or maintain a certificate, certification or license and continuing education costs needed to renew a credential."
      (Sharon Epperson, 00:20)

• Importance for Lifelong Learning in Today's Economy

  • Steve Chen, CEO of Bolden, explains the significance of these changes amidst technological disruptions like AI and potential job cuts:
    • Many workers may have to reskill or retrain, so the ability to fund ongoing education tax-efficiently is crucial.
    • Quote:

      "Some folks are then going to have to retrain and reskill. And so having the ability to tap into tax efficient dollars for funding ongoing lifetime education makes a lot of sense."
      (Steve Chen, 00:54)

• Where to Learn More

  • Jessica Ettinger closes by directing listeners to CNBC.com for Sharon Epperson’s full report on maximizing 529 plan flexibility.

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Notable Quotes & Memorable Moments

• "And now 529 plans are even more flexible."
  (Jessica Ettinger, 00:10)

• "...you can now withdraw funds from a 529 account tax free for tuition, books and fees for credential programs, testing fees to earn or maintain a certificate, certification or license and continuing education costs needed to renew a credential."
  (Sharon Epperson, 00:20)

• "...having the ability to tap into tax efficient dollars for funding ongoing lifetime education makes a lot of sense."
  (Steve Chen, 00:54)

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Important Timestamps

• 00:00 – 00:15: Introduction to the new flexibility in 529 plans (Jessica Ettinger)
• 00:15 – 00:44: Expanded use cases for 529 withdrawals explained (Sharon Epperson)
• 00:44 – 01:07: The relevance of these changes in a rapidly shifting job market (Steve Chen)
• 01:07 – 01:19: Where to find more information and episode wrap-up (Jessica Ettinger)

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Conclusion

In just one minute, this episode delivers actionable news: 529 plans now accommodate a broader array of education-related expenses, making them more useful than ever for families—and for anyone facing the need to retrain or advance their career. For detailed guidance, the listener is invited to explore CNBC’s further coverage.

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Episode Host: Jessica Ettinger
Guests/Contributors: Sharon Epperson, Steve Chen
Episode Air Date: June 12, 2026

Transcript

[Jessica Ettinger]

With a CNBC you Money Minute. I'm Jessica Ettinger. Parents use 529 plans to save for their child's education, investing and enjoying tax free growth. And now 529 plans are even more flexible.

[Sharon Epperson]

529 plans can now help people save not only for a child's education, but also for their own career training or professional credentials. CNBC personal finance correspondent Sharon Epperson. Under new rules, you can now withdraw Funds from a 529account tax free for tuition, books and fees for credential programs, testing fees to earn or maintain a certificate, certification or license and continuing education costs needed to renew a credential.

[Jessica Ettinger]

Financial planning firm Bolden head Steve Chen tells cnbc, more people may need this money anyway with AI zooming in and job cuts looming for some,

[Steve Chen]

some folks are then going to have to retrain and reskill. And so having the ability to tap into tax efficient dollars for funding ongoing lifetime education makes a lot of sense.

[Jessica Ettinger]

See Sharon's full report on new ways to use money that's growing tax free in a 529 [e-mail] I'm Jessica Ettinger, CNBC. You

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[Jessica Ettinger]

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