The Financial Planning Association has joined a new coalition that is working to pass legislation that would expand the list of educational expenses that can be paid for with 529 plan assets, including the cost of becoming a CFP.
Tomorrow’s Workforce Coalition is pushing for the adoption of the Freedom to Invest in Tomorrow’s Workforce Act (S. 722 / H.R. 1477), a bill that would allow 529 educational savings plans to pay for postsecondary training and credentialing, such as licenses and professional certifications.
The bill, which has bipartisan support and has been introduced in both the House and Senate, “would provide valuable tax-advantaged resources for families, students, and workers, with or without a college degree, who pursue career growth, mid-career changes or pathways that diverge from a typical academic route,” the FPA said.
Tomorrow’s Workforce Coalition was created to support the legislation, which allows 529 savings plans to be used for the costs of education leading to the CFP designation, among many others. It includes more than 500 trade associations, professional societies, businesses and employers. The coalition is led by the American Society of Association Executives and the Professional Certification Coalition.
“As financial planners, our members work with families who make important savings decisions for their futures. This legislation would benefit anyone who may choose a career that requires specialized training or recognized credentials and certifications, including the CFP certification,” FPA President James Lee said in a statement. “Expanding eligible uses for 529 plans would empower workers of any educational background, skill level, or age. It would also benefit all industries and professions that rely on employees with specialized training or recognition.”
FPA encourages members to support the legislation, which already has resulted in 376 letters of support to legislators from both parties in 37 states, the FPA said.
“This pragmatic policy would support all industries and professions that rely on employees with specialized training or credentials. Our community is grateful to the congressional champions for their commitment to supporting our current and future workforce,” Michelle Mason, the American Society of Association Executives president and CEO, said in a statement.
Training and credentialing organizations help expand industry excellence, establish and strengthen professional pathways, increase workers’ earning power, foster marketplace competition and supply consumers with the best products, services and expertise, the FPA said.
The legislation is sponsored led by Reps. Rob Wittman (R-Va.) and Abigail Spanberger (D-Va.) in the U.S. House of Representatives and Sens. Amy Klobuchar (D-Minn.) and Mike Braun (R-Ind.) in the U.S. Senate.