529 Savings Plan Expansion for Professional Expenses

Recent legislation expands the use of 529 education savings accounts, providing members with new ways to pay for professional expenses using tax-advantaged funds, including board exams, continuous certification, and continuing education (CE).

Beginning with qualifying expenses incurred after July 4, 2025, 529 funds can be used for:

• Professional licensure and board certification exam fees, including initial and recertification exams 
• Required CME/CE and coursework necessary to maintain professional licensure or certification
• Books and supplies required for recognized credentialing programs

This expansion reflects years of advocacy by professional certification organizations, including AANEM, to ensure that healthcare professionals can use education savings for required professional credentials. AANEM formally supported this legislation when it was introduced in 2019 and continued to back coalition efforts as it moved through Congress.

For AANEM members, this means that many common certification and CME/CE expenses may now be paid with pre-tax savings. 

ABEM Certification Qualifies

American Board of Electrodiagnostic Medicine (ABEM) certification is a nationally recognized professional credential that aligns with the eligibility criteria under the expanded 529 provisions. Qualifying expenses may include:

• Examination fees for ABEM certification, NMUS CAQ, and CNCT
• Annual Continuous Certification program fees
• CME/CE used to meet professional licensure or certification requirements
• State medical licensure fees, where required to maintain certification.

 Verification with your plan administrator is recommended for current, state-specific details.

Who Qualifies?

• Only expenses incurred by the 529 account beneficiary are eligible. To use funds for your own professional certification or licensure, you must either:
  • Open a 529 account listing yourself as both owner and beneficiary, or
  • Change an existing account’s beneficiary, if permitted by the plan.
• 529 funds designated for a child’s education cannot be used to pay for a parent’s professional certification or licensure expenses.

Keep in Mind

• Avoid double-dipping: Expenses paid with 529 funds cannot also be claimed for the Lifetime Learning Credit or deducted elsewhere on your tax return.
• Document carefully: Maintain receipts and records for expenses that are required to maintain licensure or certification.
• Consult a tax advisor: State-specific rules vary, and individual circumstances may affect eligibility and tax treatment.
• Monitor IRS guidance: Additional details may be issued as regulatory guidance evolves.  

Financial Impact

This 529 expansion allows members to use tax-advantaged savings for professional expenses over the course of their careers, from initial board exams to ongoing CME/CE and maintenance requirements. AANEM will continue to monitor federal policy changes that affect certification and continuing education and will advocate for solutions that reduce unnecessary financial barriers for our members. For more details, consult your 529 plan provider or financial advisor to determine how to best take advantage of the expanded 529 rules.