Recent Federal Law Changes

Effective for withdrawals beginning July 5, 2025

• Credential Expansion – You can now use 529 funds for certain credentialing expenses.
• K-12 Expansion – In addition to tuition, 529s can now be used for additional K-12 expenses such as books, testing fees, tutoring, and educational therapies for students with disabilities.

The Indiana Department of Revenue has not yet determined whether credentialing expenses and the expanded K-12 expenses are considered qualified expenses for Indiana tax purposes.

Eligible credentialing expenses can be found in the new federal law - HR 1 Section 70414.