Certification Just Got More Affordable
CCI credentials now qualify for tax-free 529 plan funding
What This Means for You
Thanks to the Freedom to Invest in Tomorrow’s Workforce Act, you can now access tax-advantaged 529 plan funds to pay for your CCI certification, renewal fees, continuing education, and study materials. Whether you’re pursuing your first certification or maintaining multiple credentials, this expansion makes professional development more accessible than ever.
From Education Savings to Career Savings: This represents a fundamental shift in how 529 plans work, moving from traditional education savings plans to comprehensive career savings plans that support your professional growth throughout your lifetime.
Why This Matters
Tax-Free Growth
Contributions grow tax-free, and withdrawals for qualified expenses are not subject to federal taxes on earnings.
Lifetime Learning
Use 529 funds throughout your career, from initial certification through renewals and continuing education.
Family Flexibility
Redirect existing college 529 plans to certification, or have family members contribute to your career development.
Automatically Qualified
Any of CCI’s certifications that are listed on the DOD COOL (Credentialing Opportunities On-Line) website qualify for 520 Plan use, making them automatically eligible under federal law.
No additional approval needed.
This includes CNOR, CNAMB, CFPN, and CSSM.
What Expenses Are Covered
You can use 529 funds for all these CCI-related expenses:
Certification Exam Fees
Initial certification examination costs
Renewal Fees
Certification maintenance and renewal costs
Continuing Education
Required CE courses for credential maintenance
Study Materials
Review courses, prep books, and study guides
Multiple Certifications
CNOR, CNAMB, CFPN, and CSSM are all eligible for 529 Plan use
How it Works
Contact Your 529 Plan Administrator
Reach out to your existing 529 plan (or the plan you’re considering) to confirm they’ve implemented the credential expansion. Most major plans are already operational.
Verify CCI Eligibility
Any of CCI’s certifications that are listed on the DOD COOL (Credentialing Opportunities On-Line) websites qualify for 520 Plan use, making them automatically eligible under federal law. No additional approval needed. This includes CNOR, CNAMB, CFPN, and CSSM.
Request Withdrawal of Reimbursement
You can either have funds sent directly to CCI, or pay for your certification and then request reimbursement from your 529 plan.
Keep Your Records
Save all receipts, invoices, and documentation related to your CCI certification expenses in case of an IRS audit.
Ready to Get Started?
Ways to Use 529 Plans for Your CCI Certification:
- 1. Use an Existing 529 Plan
- If you or a family member has a 529 plan (even one originally for college), you can redirect those funds to professional certification. Contact your plan administrator to change the beneficiary if needed.
- 2. Open a New 529 Plan
- You can open a 529 plan today and name yourself as the beneficiary. Anyone can contribute to help fund your certification journey.
- 3. Have Someone Contribute to Your Certification
- Parents, grandparents, spouses, or other family members can open a 529 plan with you as the beneficiary, making it easy for them to support your career advancement.
Frequently Asked Questions
No, only CNOR, CNAMB, CFPN, and CSSM are eligible. Any of CCI’s certifications that are listed on the COOL website qualify for 520 Plan use, making them automatically eligible under federal law. No additional approval needed.
Absolutely. The law specifically includes renewal fees, annual maintenance fees, and continuing education required to maintain your certification as qualified expenses.
Yes! You can open a 529 plan at any time and name yourself as the beneficiary. While you won’t benefit from years of tax-free growth, you still avoid taxes on any earnings. You can also have family members open a plan for you.
Yes. You can change the beneficiary of an existing 529 plan to yourself or another family member. Contact your 529 plan administrator to make this change. This is especially useful if you have leftover funds after college or if your child receives scholarships.
The federal law is in effect, but some states may still be updating their administrative systems. Contact your state’s 529 plan to ask about their implementation timeline. Many major plans are already operational.
No. When used for qualified credentialing expenses like CCI certification, 529 withdrawals are not subject to federal income tax on earnings. Many states also offer state tax benefits for contributions.
Keep all receipts, invoices, and documentation from CCI related to your certification, renewal, and continuing education expenses. Your 529 plan administrator may ask you to attest that withdrawals are for qualified expenses.
CCI certifications are accredited by the National Commission for Certifying Agencies (NCCA), which is explicitly named in the federal law as automatically qualifying certifications. Additionally, CCI meets the industry-recognized credential standards required by the IRS.
The federal tax-free treatment applies nationwide, but state-specific tax benefits and contribution advantages can vary by state and income level. Check with your state’s 529 plan administrator for specific state benefits.
Yes. Retesting fees are covered as qualified expenses under the 529 expansion, as they are necessary for obtaining your credential.
Technically yes! If your employer offers professional development support, you might discuss this option with HR.
Additional Resources
Find Your State’s 529 Plan
Locate your state’s 529 plan and learn about state-specific benefits.
Professional Certification Coalition
Learn more about the law and how it was passed.
Important Disclaimer: The Competency & Credentialing Institute provides this information for educational purposes only. This is not tax, legal, or financial advice. Please consult with a qualified tax professional or financial advisor regarding your specific situation. CCI is not affiliated with any 529 plan provider. Rules and benefits vary by state—contact your 529 plan administrator for specific guidance.
Invest in Your Professional Future
Explore how 529 plans can help establish a new funding pathway for credentialing and make earning a credential more affordable.
