Eligible Education Expenses

Withdrawals from your PA 529 account are tax-free when used to pay qualified education expenses. These expenses are defined by the Internal Revenue Code to include the following:

Qualified K-12 Education Expenses

Expenses up to $20,000 per year, per beneficiary at an elementary or secondary public, private, or religious school. Additional details and resources related to qualified K-12 expenses may be found in a separate FAQ below.

Qualified Higher Education Expenses

As defined by the Internal Revenue Code, qualified higher education expenses include:

Tuition

Room and board (as specified in the college's cost of attendance; must be at least a half-time student)

Required books

Required supplies

Required equipment, including computers*

Mandatory fees

Special needs services

Principal and interest on a qualified education loan for a PA 529 beneficiary or sibling up to $10,000.

* Must be used primarily by the beneficiary during any of the years the beneficiary is enrolled at an eligible educational institution.

Credential Programs

PA 529 accounts can pay for tuition, fees, books, supplies and equipment required for a recognized post-high school credential program. Additional details and resources related to qualified credential programs may be found in a separate FAQ below.

Apprenticeship Programs

Use your PA 529 account to pay for fees, books, supplies, and equipment required for the participation of a designated beneficiary in a registered and certified apprenticeship program.* Visit apprenticeship.gov to learn more.

* Only expenses for fees, books, supplies, and equipment required for the participation of a designated beneficiary in a registered and certified apprenticeship program are considered qualified higher education expenses.

No. The money in your PA 529 account may be used at any eligible higher education institution in the United States and abroad that qualifies under federal guidelines. This includes most public and private colleges and universities, graduate and postgraduate schools, community colleges and certain proprietary and vocational schools. To search for eligible schools, go to studentaid.gov .

For registered and certified apprenticeship programs, the money in your PA 529 account may be used to pay for required fees, books, supplies, and equipment. The apprenticeship program must be registered and certified with the U.S. Secretary of Labor under Section 1 of the National Apprenticeship Act (29 U.S.C. 50). Visit apprenticeship.gov to learn more.

Credential programs authorized under the Workforce Innovation and Opportunity Act (WIOA), credentials approved by a state or the federal government, credentials authorized in the U.S. Department of Veterans Affairs' Web Enabled Approval Management System (WEAMS), and credentials authorized by certain recognized providers are included in this expansion. Additional resources you can use to search for credential programs are available in an FAQ below.

Nearly all colleges, universities, community colleges, and law, medical or business schools qualify. Many career or technical schools and schools abroad are eligible as well. The school must be eligible to participate in federal financial aid programs. To search for eligible schools, go to studentaid.gov .

Yes. You may use a PA 529 account to pay for expenses in connection with enrollment or attendance at an elementary or secondary public, private, or religious school up to $20,000 per year, per beneficiary. Qualified K-12 expenses include tuition, curriculum and curriculum materials, books or other instructional materials, costs associated with tutoring or other classes outside the home, fees for certain exams, and educational therapies for students with disabilities.

Please note qualified withdrawals from the PA 529 GSP are made using a “first in – first out” basis, meaning your oldest contributions (and any associated growth) are the first to be withdrawn.

Yes. The amount of qualified distributions from a PA 529 account for the same beneficiary during any taxable year cannot exceed $20,000.

Yes, within limits. Account owners can treat qualified K-12 withdrawals, up to $20,000 per beneficiary per year, as qualified expenses with respect to the federal and Pennsylvania state income tax benefits.* For more information, account owners should consult the Pennsylvania Department of Revenue at revenue.pa.gov or by calling 717-787-8201 or consult a qualified tax advisor about your personal situation.

*The availability of tax or other benefits may be contingent on meeting other requirements. The earnings portion of a withdrawal not used to pay for qualified expenses may be subject to federal income tax and a 10% federal penalty tax; the entire withdrawal may be subject to state and local income taxes.

Resources for Credential Programs

The federal reconciliation bill (H.R.1) signed into law on July 4, 2025, contains several provisions that directly relate to 529 plans, including expansion of qualified expenses related to credential programs.

PA 529 compiled a list of resources and websites to use when researching and determining if a certain credential program is qualified.

Credential Programs included for PA under the WIOA – Learn more

Programs listed in the public directory of WEAMS, Veterans Benefit Administration - Learn more

WIOA Post-Secondary Credential Attainment Tool (Used to determine whether credential meets the definition of recognized postsecondary credential) - Learn more

Verify a Pennsylvania Professional and Occupational Licensing - Learn more

Institute for Credentialing Excellence Accredited Program Search - Learn more

National Commission on Certifying Agencies Accreditation - Learn more

American National Standards Institute Accreditations - Learn more

DOD Credentialing Opportunities Online (COOL) Directory - Learn more https://www.cool.osd.mil/