With the lazy days of summer in full effect, it may be hard to believe that another school year is just around the corner. But as the school year approaches, it’s a good time to brush up on changes made to 529 education savings plans by the “One Big Beautiful Bill Act.” Passed a year ago, the law added flexibility to how 529s can be used, making them an attractive option for more people.
These state-sponsored education savings plans allow money to grow free of federal tax, and withdrawals are free from federal income tax when used for qualified expenses. Under OBBBA, 529 plan distributions can now cover more expenses.
Reflecting the increasing integration of digital resources in education, the law expanded the definition of “qualified higher education expenses.” Qualified expenses now include the purchase of computers, tablets, internet access, required software and other digital learning materials, even if not specifically required by the school.
As of January 1, 2026, the annual qualified expense cap for K-12 doubled, increasing from $10,000 to $20,000 per student. An individual can give up to $19,000 to a 529 plan in 2026 without the money counting against the lifetime gift tax exemption amount. According to SavingforCollege.com, more than 30 states offer either state income tax deductions or state tax credits for 529 plan contributions.
529 Plans Not Just For Kids
The rules for 529s have continued to evolve, and under OBBBA, people who want to advance their careers or change careers may want to consider 529s for themselves. Expenses related to earning certifications, licenses and professional credentials can now be covered by 529 plan distributions. Students of any age pursuing skilled trades or credentials, such as CFP® certification, can benefit, expanding the use of 529s beyond students in K-12 or students pursuing college or university degrees.
To learn more about changes to 529s under OBBBA, download CFP Board’s Key Elements: “One Big Beautiful Bill Act” guide.
It’s time to start planning your conference experience. Browse the CFP Board Connections Conference 2026 agenda to explore the timely topics, emerging trends and practical strategies shaping the future of financial planning. The agenda will continue to evolve with additional sessions, speakers and details, so check back often for the latest updates.
Registerby Saturday, July 25, to save $200, and join us in Las Vegas October 5-7. Attendees can earn up to 15 CE credits over three days packed with education, insights and inspiration.
Conference Highlight: Keynote speaker Patti Brennan, CFP®, CEO of Key Financial, Inc., challenges advisors to think beyond traditional financial, tax and estate planning. In her session on October 5, she will introduce a practical framework for helping clients navigate longer lives, major life transitions and moments of vulnerability.
Patti's unique journey from an ICU nurse to a nationally recognized financial advisor, CEO, bestselling author and podcast host has shaped her deeply human approach to financial planning that combines technical excellence with compassion.
In early July, the IRS announced a new automatic process to provide penalty relief for taxpayers with a history of filing and paying their taxes on time. The new Automatic Exemption from Penalty (AEP) will replace the First Time Abate administrative relief, which taxpayers had to request.
AEP is expected to begin this summer, applying to eligible original returns beginning with tax year 2025. Taxpayers qualify if they have timely filed their return and paid any tax due in the three prior years (or 12 consecutive quarters for quarterly returns).
When taxpayers qualify, penalties are not assessed during processing for failure to file, failure to pay and failure to deposit. Read more about the transition to AEP.
New Savings Accounts for Kids Officially Open
As America rang in its 250th birthday, families can now deposit money into 530A accounts, also known as “Trump accounts.” The annual contribution limit for individuals in 2026 for 530A accounts is $5,000 (employers can contribute up to $2,500, but the money counts toward the $5,000 limit).
Children born between 2025 and 2028 also qualify for a $1,000 federal contribution. But parents don’t need to fret if they haven’t opened a 530A account yet.
Erin Koeppel, CFP Board’s Managing Director of Government Relations & Public Policy Counsel, notes in MarketWatch that IRS proposed rules say families can open an account and claim the federal contribution anytime until the last day of the year in which the eligible child turns 17. Learn more in the MarketWatch article.
CFP Board Research: Americans Not Prepared to Deal With Financial Fraud
In CFP Board’s latest research, “Don’t Fall for It: Guarding Against Financial Fraud,” 62% of Americans say they have already encountered fraud or know someone who has in the past three years. But just 37% are confident that they could identify every form fraud takes, and 29% are unsure whether they could detect an attempt before it is too late. To learn more about the impact of financial fraud on Americans, read the full report.
Financial Planning Review, published by Wiley and housed in CFP Board Center for Financial Planning, features original research that advances the body of knowledge in financial planning and related disciplines. Now part of Wiley’s Open Access portfolio, every article published since January 1, 2025, is free to read, download and share. Explore leading research offering new perspectives and applications for financial planners and educators.
AI in Practice: Getting Started With Low-Risk, High-Value Use Cases
July 30
2-3 p.m. ET
Learn how to integrate artificial intelligence (AI) into your financial planning workflow in this engaging hour-long webinar. Explore real-world examples illustrating how AI adds value and enhances efficiency while elevating the impact of human expertise and the relationships between practitioners and clients.
Recording: Certificant Connections: A Conversation With CFP Board Leadership
CFP Board Chair Terri Kallsen, CFP®, 2026 Chair-Elect Martin Seay, Ph.D., CFP® and CEO K. Dane Snowden discussed key priorities, emerging trends across the profession and the topics generating the most discussion among CFP® professionals today.
Explore Compliance Resources for the Code and Standards
To help CFP® professionals understand and comply with the Code of Ethics and Standards of Conduct, CFP Board has developed a robust Resource Library that contains a variety of guidance resources, including compliance checklists, FAQs and short videos addressing key elements of the Code and Standards.
At CFP Board, we believe each employee contributes directly to our organization's growth and success. We're currently looking to fill several positions in our Washington, D.C., office. View the list of currently open positions, and please share these opportunities with your colleagues who may be interested.
