A recent change in federal law is making professional certification more financially accessible for individuals to pursue and maintain professional credentials. The Freedom to Invest in Tomorrow’s Workforce Act, signed into law July 4, 2025, as part of the One Big Beautiful Bill Act, expands 529 savings plans to include many professional certifications. This update shifts these accounts from college savings tools to broader career savings plans. (United States Congress, 2025)
For the first time, nurses may use 529 plan funds to pay for certifications, including those offered by the Competency and Credentialing Institute (CCI). Eligible expenses include exam fees, renewal fees, required continuing education and study materials. This development removes financial barriers that may have limited access to certification for some perioperative nurses. (Institute for Credentialing Excellence, 2025)
Understanding the Changes
The law amends Section 529 of the Internal Revenue Code to recognize qualified postsecondary credential expenses. These include fees, books and supplies required for enrollment in a credential program, as well as costs for testing or maintaining a professional certification. The expansion covers credentials that meet recognized accreditation standards, including programs accredited by the National Commission for Certifying Agencies (AICPA & CIMA Insights, 2025).
At CCI, four of our credentials meet the federal definition of qualified credentials. Eligible programs include the Certified Perioperative Nurse (CNOR), Certified Ambulatory Surgery Nurse (CNAMB), Certified Surgical Services Manager (CSSM) and Certified Foundational Perioperative Nurse (CFPN) credentials.
According to the legislation and related credentialing resources, the following expenses may qualify for 529 plan withdrawals when tied to an eligible credential: Certification exam fees, including retesting; Renewal and maintenance fees; Required continuing education courses; Books, study materials and supplies; Application or processing fees; Equipment required for preparation. (BOCATC, 2025)
How 529 Plans Work
A 529 plan is a tax-advantaged savings account used for education and, now, professional credentialing. Contributions are made with after-tax dollars. Funds grow without federal tax on earnings, and withdrawals for qualified expenses are not taxed at the federal level. Anyone may open a 529 plan and name any beneficiary, including themselves. Account holders may also change the beneficiary. This flexibility allows families to redirect unused education savings toward professional development. Many states offer additional tax benefits for contributions. State programs vary, so individuals should review their own state’s plan to understand available features. Nearly all states sponsor at least one plan, and individuals may often invest in a plan outside their home state. (SavingforCollege.com, 2025)
The expansion took effect immediately at the federal level. Withdrawals made after July 4, 2025, for qualified credential expenses may fall under the updated rules. However, state 529 plan administrators are implementing the changes on different timelines. Individuals are encouraged to contact their plan administrators directly to confirm current procedures, reimbursement options and documentation requirements. (my529, 2025)
Implications for Perioperative Nursing
The 529 expansion arrives at a time when perioperative nursing continues to experience workforce challenges. Certification can enhance clinical confidence and contribute to a strong safety culture, but cost can often be a barrier. With 529 eligibility, more nurses may find certification and renewal financially within reach. (Institute for Credentialing Excellence, 2025)
Family and Employer Roles
Because 529 plans allow anyone to be a contributor, family members may choose to support a nurse’s professional development. Parents and grandparents may contribute to accounts for adult learners, including nurses pursuing CCI certification. Existing accounts originally intended for a child’s college costs may also be reassigned if funds remain unused.
Taking the Next Steps
Nurses considering 529 funding for certification may take the following steps: Review whether they already have a 529 savings plan or wish to open one; Contact the plan administrator to confirm that credentialing expenses are being processed under the updated federal standards; Retain receipts and documentation for all certification-related expenses; Review CCI’s information on 529 plan eligibility for details specific to CCI certifications.
The expansion of 529 eligibility reflects a broader national recognition that professional competence grows through both academic education and ongoing credentialing. As more states finalize implementation, more nurses will be able to use these plans to support continuing education and formal certification. (The College Investor, 2025)
Information about CCI certifications and 529 plan eligibility is available at www.cc-institute.org/529-plans or by calling CCI at 303.369.9566. CCI does not offer tax or financial advice and encourages individuals to consult qualified professionals for personal guidance.
Print Sources
- United States Congress. Freedom to Invest in Tomorrow’s Workforce Act, 2025.
- Institute for Credentialing Excellence. Expanding 529 Savings Plans to Support Professional Certification, 2025.
- AICPA & CIMA Insights. 529 Plan Expansion and Professional Credentials, 2025.
- CLARB. 529 Accounts and Licensure Related Expenses, 2025.
- BOCATC. Understanding 529 Plan Eligibility for Credentialing Costs, 2025.
- SavingforCollege.com. Using a 529 Plan for Continuing Education, 2025.
- my529. 529 Plan Updates for Professional Credentials, 2025.
- The College Investor. 529 Plan Expansion: What You Need to Know, 2025.
