DID YOU KNOW?       

529 plans are a popular way to save for college. Many children have 529 plans set up from then when they are little, and contributions are made by relatives and friends to their plans over time, leading to substantial savings by the time a child turns 18.

But what happens to the money if  a young person graduates from high school and chooses not to go to college or wants to delay college until later? 

Thankfully, 529 plans can be used for Truck Driving and/or Diesel Technical Schools!

What is a 529 plan?

A 529 plan is a type of savings and investment account in which money grows tax-free as long as the withdrawals are for qualified education expenses. They are named after a section of the IRS code.

There are two types of 529 plans:

1. 529 college savings plans are the most common type. Investments grow tax-free and can be withdrawn tax-free for educational expenses such as tuition, room and board, and required textbooks.

2. 529 prepaid plans let you prepay part or all of an in-state public tuition, locking in the tuition at time of payment.

529 plans can be used to pay for postsecondary education at any eligible institution, including trade schools. Trade school programs usually take less than two years to complete and are less expensive than four-year degrees.

Even if parents originally set up a 529 plan to pay for a child's 4-year degree, the funds may still be withdrawn tax-free to pay for trade school expenses. If there are funds left over in the 529 account after the trade school is paid for, parents can choose to change the beneficiary to another qualifying family member or use the funds for their own education without penalty. 

529 plan funds can be used for tuition and fees, textbooks, supplies and equipment (including tools), special needs expenses, computers, internet access, and room/board. 

You can use the link below to look up schools in Pennsylvania that accept 529 funds. However, the list of eligible truck driving and diesel mechanics schools is provided below. 

Federal School Code Lookup for Section 529 Eligible Institutions (savingforcollege.com)

Truck Driving Schools:

Berks Technical Institute (Wyomissing)

Central Pennsylvania Institute of Science & Technology (Pleasant Gap)

Clearfield County Career & Technology Center (Clearfield)

Delaware County Community College (Phoenixville)

Fortis Institute (Forty Fort)

Harrisburg Area Community College (Harrisburg)

Huntingdon County Career & Technology Center (Mill Creek)

Lancaster County Career & Technology Center (Willow Street)

Lehigh Carbon Community College (Schnecksville)

Lenape Technical School (Ford City)

Luzerne County Community College (Nanticoke)

New Castle School of Trades (New Castle)

Northampton Community College (Bethlehem)

Pennsylvania College of Technology (Williamsport)

Somerset County Technology Center (Somerset)

Western Area Career & Technology Center (Canonsburg)

For Diesel Mechanics only:

Central Pennsylvania Diesel Institute (Liverpool)