New Bill Allows 529 Plans to Be Tapped for CFP, CPA Exams

The group pointed out in a letter to lawmakers that the bill "would allow individuals to use 529 funds for expenses, fees and costs related to the Uniform CPA Examination (CPA Exam), which is one of three critical components required for licensure" as a CPA.

AICPA told the lawmakers to ensure, as the legislation advances, "that 529 plan owners and administrators can easily understand and use the expanded benefit. To help achieve this outcome, we encourage increased clarity around the process used to identify a certification as a 'recognized postsecondary credential,' as well as clarity on the qualifying expenses, fees and costs under the proposal."

Jan Lewis, chair of the AICPA Tax Executive Committee, said in statement that "certifications and continuing education are cornerstones of the accounting profession, as tax and accounting laws continue to evolve. This bill allows greater flexibility to accounting professionals to gain and maintain professional certifications, including the CPA certification, and better serve our clients."

Section 529 savings plans allow students and families to save in an investment account for K-12 and college tuition, room and board and related costs. Earnings and contributions can be withdrawn tax-free to pay for qualified educational expenses. Withdrawals for other reasons  are subject to income taxes and a 10% penalty.

The Setting Every Community Up for Retirement Enhancement (Secure) 2.0 Act allows some unused 529 plan funds to be rolled into a Roth IRA.