April 30 is celebrated as National Apprenticeship Day, which highlights apprenticeships as a great way to develop a highly skilled workforce that strengthens the economy. There are many apprenticeship opportunities that can lead to well-paying jobs in an in-demand field.
And if you have been saving with Ohio 529 CollegeAdvantage, your savings can be used to pay for certain apprenticeship costs.
If you child is interested in an apprenticeship, the program must be registered with the U.S. Secretary of Labor’s National Apprenticeships Act in order to use your 529 savings there.
What is an apprenticeship?
An apprenticeship is training in a skilled profession, which usually starts after high school graduation, though there are some pre-apprenticeship options in the K-12 system. The employer or trade union will pay a student during the apprenticeship, which usually lasts between three to five years as they receive hands-on training. At the end of their apprenticeship, the student will receive a nationally recognized industry credential, which accompanies them wherever their career path might lead.
As a student is receiving real-world training, there may be some costs involved, which are usually for the tools of the trade. If you have been saving in a 529 plan, you can take a withdrawal from your account to pay for those tools and more, like fees, textbooks, and supplies. Again, the apprenticeship must be registered with the U.S. Labor Department to keep your 529 withdrawal tax-free.
Another advantage is that students could already have a full-time job lined up after they complete their apprenticeship. Most organizations want to hold onto the skilled workers they’ve trained, especially for in-demand fields.
Ohio 529 can pay apprenticeship costs
While there are many career paths for your kids, one thing is certain: Ohio's tax-free 529 Plan is the simple way to help them prepare for their future. Your savings grow tax-free and stay tax-free when used for qualified higher education expenses. And Ohio 529 can be used at thousands of schools, nationwide.
With the passage of the SECURE (Setting Every Community Up for Retirement Enhancement) Act in 2019, apprenticeships were added as another post-secondary education option for which you can use your 529 account.
So tax-free Ohio 529 withdrawals can pay for qualified costs for apprenticeships such as fees, textbooks, supplies, and equipment like required trade tools. The apprenticeship program must be registered with the Secretary of Labor’s National Apprenticeships Act to use a 529 plan withdrawal. Interested parties can check the U.S. Labor Department’s search tool to confirm that a program is registered, and therefore, eligible for a 529 withdrawal.
State of Ohio apprenticeship opportunities
The State of Ohio wants to help interested students find the perfect apprenticeship opportunity for them. Apprentice.ohio.gov shows the multitude of career occupations apprenticeships available throughout Ohio.
If your child would also like to earn an associate’s degree, there are apprenticeship programs in Ohio where participants earn credits towards an associate of technical studies degree. The Ohio Department of Higher Education’s Apprenticeship Pathways Initiative has linked apprenticeship programs with local two-year community colleges so participants can also earn a technical associate’s degree. Some of the trades cooperating in this program include electrical, sheet metal, carpentry as well as plumbers and pipefitters. Recent apprenticeship expansion grants have also dramatically increased the number of available apprenticeship programs on community college campuses around Ohio. These new programs are also built into a technical associate’s degree.
Since 1989, Ohio 529 CollegeAdvantage has been helping families across the nation save for their children’s college and career training. Ohio 529 Plan covers qualified costs at any four-year college or university, two-year community college, trade or vocational school, apprenticeship approved by the U.S. Labor Department, or certificate program nationwide that accepts federal financial aid. Learn, plan, and start for as little as $25 today at CollegeAdvantage.
