What State Regulators Need to Know: 529 Plans Can Now Fund Licensing and Certification Costs for Athletic Trainers
As a state regulator responsible for licensing Athletic Trainers (ATs), you play a critical role in ensuring that practitioners meet and maintain professional standards. Thanks to the powerful advocacy of ASAE’s Tomorrow’s Workforce Coalition, and the support of its members, 529 Career Savings Plans can now be used to pay for professional licenses and certifications. Starting July 4, 2025, a major change to federal law allows individuals to use 529 Plan funds to pay for many credentialing and licensing expenses.
This new flexibility means AT and athletic training candidates may look for guidance on whether state fees qualify.
Key Changes to 529 Plans
Traditionally, 529 Plans were tax-advantaged savings accounts for college tuition. Contributions grow tax-free, and withdrawals for qualified expenses aren’t taxed. Many states also offer additional benefits such as tax credits.
Under the new rule, 529 funds may be used to cover:
- Exam fees for certification, licensing or certification renewal
- Tuition or fees for approved training or preparatory programs
- Required books, supplies or equipment
- Continuing education fees necessary to maintain a credential
This directly affects candidates pursuing or maintaining BOC certification, state licensure and other approved credentials.
Steps State Regulators Can Take
- Confirm your program’s eligibility. Review whether your state’s licensing fees, exams and continuing education (CE) requirements meet the new criteria.
- Update public information. Licensees may ask if they can use 529 funds for your fees. Consider clarifying this on your website, applications or renewal materials.
- Coordinate with providers. Encourage training programs and CE providers you approve to explore 529 eligibility and communicate that status to ATs.
- Prepare for documentation requests. Licensees may need invoices or receipts to provide to their 529 plan administrators or to the IRS.
Why It Matters
529 Plans offer a new, tax-advantaged way for ATs to meet the costs of entering and staying in the athletic training profession. By understanding and communicating these changes, state regulators can:
- Support the athletic training profession
- Reduce financial barriers for licensure and certification
- Help ensure smoother implementation of this new funding option
Resources
- Federal 529 Plan information: https://www.collegesavings.org/find-my-states-529-plan
- Compare state benefits: https://www.savingforcollege.com/compare-529-plans/state-tax-deductions
If your fees or approved programs are not yet listed as 529-eligible, awareness and outreach can help position your state as a leader in supporting AT credentialing and workforce development
