CHARLESTON, W.Va. – State Treasurer Larry Pack today announced expanded benefits to the SMART529 program following the passage of President Donald Trump’s One Big Beautiful Bill Act are now available to view on the SMART529.com website.
The bill was signed into law on July 4, 2025, introducing meaningful updates that impact how families can use 529 education savings plans. The changes include licensing and certification for trades, educational therapies, curriculum materials, online education resources, and dual enrollment program fees.
“These changes aim to make SMART529 plans more versatile and adaptable to diverse educational and career paths,” Treasurer Pack said. “As a father of six children, I know first-hand that each child learns differently and has different metrics for success. The worst thing we can do is create a one-size-fits-all system that traps a student that may not work for them. I support President Trump for offering greater flexibility, broader coverage of educational expenses, and more options for long-term planning for our West Virginia families.”
West Virginians can now access information online to find out how the new federal legislation expands the usage of 529 savings. Here is a breakdown of the key changes affecting 529 plans:
Expanded Eligibility
- Families can now use 529 plans for credentialing programs such as welding, aviation mechanics, and other trade certifications.
- Covered expenses include tuition, testing fees, and costs for books, equipment, and continuing education required to obtain or maintain a professional credential. This includes not only initial program costs but also exam fees and continuing education required to obtain or maintain certification.
- Recognized credential programs include those authorized under WIOA, military credentials, and programs approved by state or federal governments or formal credentialing organizations. This applied on July 4, 2025.
Broader K-12 Expenses
- The annual per-student withdrawal limit for K-12 expenses has doubled from $10,000 to $20,000. The increase allows parents greater latitude in covering comprehensive education expenses for private, religious, or eligible public schools. This begins January 1, 2026.
- Qualified expenses for K-12 education now include a broader range of costs beyond tuition, such as curriculum materials, fees for nationally standardized tests, dual enrollment fees, online educational materials, academic tutoring, and support for diagnosed learning differences. This took effect on July 5, 2025.
Enhanced Flexibility and Rollovers
- The ability to roll over funds tax-free from 529 accounts to ABLE accounts has been made permanent.
- Unused 529 funds (up to $35,000 lifetime) can be rolled over to the beneficiary’s Roth IRA, subject to certain conditions. This began in 2024.
- 529 funds can be used to repay student loans, up to certain limits. This began in 2020.
New MAGA kids’ accounts
- In addition to the 529 account changes, the OBBBA also introduces a new “Money Accounts for Growth and Advancement” (MAGA) program to help families save for a child’s future education, first-home purchase, or starting a small business.
For more information regarding the SMART529 Program, visit SMART529.com.
