Using a 529 Plan for Trade Schools, Apprenticeships, and Credential Programs

A trade school or vocational program qualifies for 529 withdrawals if it has a federal school code and participates in federal financial aid programs (Title IV). You can look up any institution's eligibility on the Federal Student Aid website (studentaid.gov/FAFSA-app/FSAIDLoginPage) using the school search tool. If the school appears on the federal school code list, qualified expenses at that institution can be paid with 529 funds. Additionally, the OBBBA 2026 added postsecondary credentialing programs directly to the qualified expense list even if they do not participate in federal financial aid, as long as they lead to a recognized credential.

It depends on the specific bootcamp. Coding bootcamps that participate in federal financial aid programs qualify for 529 withdrawals. As of 2024, a small number of coding bootcamps have gained federal financial aid eligibility through partnerships with accredited institutions. Most traditional coding bootcamps (General Assembly, Coding Dojo, etc.) do not qualify under the original 529 rules. However, the OBBBA 2026 added postsecondary credentialing programs to the qualified expense list, which may broaden eligibility for tech credential programs that lead to recognized industry certifications. Verify the specific program's status before withdrawing.

For students enrolled at least half-time at a qualified trade school, qualified 529 expenses include tuition, fees, books, supplies, equipment (including tools required for the program), and room and board. For less than half-time enrollment, room and board does not qualify, but tuition, fees, books, supplies, and required equipment still do. Under the OBBBA 2026, tuition and fees for postsecondary credentialing programs now qualify even if the program is not at a traditional accredited institution.