DENVER, CO – The House Education Committee today passed a bill that would allow 529 account funds to be used on post-secondary apprenticeships and programs. This switch would save Coloradans money on pursuing post-secondary learning beyond traditional higher education models.
“This bill will save Coloradans money on apprenticeship programs and boost our growing workforce,” said Cathy Kipp, D-Ft. Collins. “Expanding the usage of 529 funds to include apprenticeships makes it easier for Coloradans to enter high-demand careers as carpenters, plumbers, and electricians among other skilled trades. Career paths aren’t set in stone and this bill gives Coloradans the choice to pursue their own educational path, whether it guides them to an apprenticeship program or traditional higher education.”
HB22-1310, sponsored by Representatives Cathy Kipp and Colin Larson, passed committee unanimously. This bill would allow 529 funds to be spent on post-secondary opportunities beyond higher education, including apprenticeships. 529 accounts operate similarly to Roth retirement accounts, they grow tax free for the purpose of investments in future education or retirement. However, under current law, qualified education expenses only include certain post-secondary education, such as higher education and college.
This bill would extend the use of 529 funds to be used for other post-secondary education, such as apprenticeships and trades work. If signed into law, 529 funds can be spent on fees, books, supplies and equipment for certain apprenticeship programs.