The American Institute of Certified Public Accountants (AICPA) is endorsing federal legislation that would expand eligible uses of 529 savings plans.
The proposed bill – the Freedom to Invest in Tomorrow’s Workforce Act (H.R. 1477) – would expand 529 uses to include fees and expenses required to obtain or maintain recognized postsecondary credentials. This would include professional credentials and certifications. AICPA officials said it would provide accounting professionals with greater financial flexibility as they enter the workforce and seek to further their education.
The bipartisan legislation was introduced in the House by U.S. Reps. Abigail Spanberger (D-VA) and Rob Wittman (R-VA).
“We are grateful to Representatives Spanberger and Wittman for their leadership on this important legislation to increase the flexibility of using the 529 plans,” Jan Lewis, chair of the AICPA Tax Executive Committee, said. “Certifications and continuing education are cornerstones of the accounting profession as tax and accounting laws continue to evolve. This bill allows greater flexibility to accounting professionals to gain and maintain professional certifications, including the CPA certification, and better serve our clients.”
In a letter to the lawmakers, AICPA officials made a few recommendations. Among them, they highlighted the importance of ensuring that 529 plan owners and administrators can easily understand and use the expanded benefit. Thus, the organization encourages increased clarity around the process used to identify a certification as a recognized postsecondary credential. Further, AICPA is seeking clarity on the nature of qualifying expenses, fees, and costs under the proposal.