Edvest 529 College Savings Plans Can Help Pay for Registered Apprenticeship Programs

published October 2, 2024

While apprenticeship programs can often be completed in two years, potentially offering a more affordable education pathway to a career, there are still costs associated with enrollment and completion. Thanks to the passage of the 2019 SECURE Act, qualified costs associated with apprenticeship programs — such as fees, textbooks, supplies, and equipment, like required trade tools — can be paid with funds saved in a 529 plan.

529 Plans & Apprenticeship Programs

Students develop different goals and interests over the years, so families unsure of a student’s future education and career path can be assured that funds saved in an Edvest 529 plan offer flexibility. Money saved can be used to support a variety of postsecondary aspirations, including attendance at eligible trade, tech, or vocational schools, community colleges, and traditional four-year universities – nationwide and abroad – as well as registered apprenticeship programs.

An apprenticeship is an "earn while you learn" program that provides on-the-job training and related instruction. An employer teaches the skills of the occupation, while an area technical college or private training center teaches the theoretical knowledge pertaining to the specific occupation. If an apprenticeship program is certified and registered with the Secretary of Labor, you may use funds saved in an Edvest 529 account to pay for related program fees, textbooks, supplies, and equipment.

Nicci Pagan, Apprenticeship Coordinator at Gateway Technical College, shared that while there are more apprenticeship programs than ever before, many students and families are still not aware of how these programs work, the costs associated with them, and the many types of jobs that can be secured after completion. Speaking from her own personal experience, Pagan shared that she wished she had been more aware of apprenticeship programs when she was a student and a single mother.

“An apprenticeship program would have been a fabulous solution for me to get my education while also earning a wage.” She made it her mission to educate as many people as possible in the state about the benefits of apprenticeship programs. “They are a great opportunity for individuals who don’t want to give up education to have a skill, but need to be able to work as well,” said Pagan.

Nicci Pagan also shared that "being able to use an Edvest 529 account to help pay for program costs is a helpful option that allows an apprentice to afford not only their tuition and fees, but also the tools, the uniforms, the things they need for all of the on-the-job training as well."

Finding a Registered Apprenticeship Program

There are over 24,000 apprenticeship programs nationwide, according to the U.S. Department of Labor. Programs cover a wide range of industries, with an average annual salary for those who complete their apprenticeship of $70,000. In Wisconsin, employers train approximately 10,000 individuals annually through apprenticeship programs in about 200 occupations – from construction and manufacturing to healthcare and information technology.

The following resources can assist in finding a registered apprenticeship program:

1. Department of Labor - Apprenticeship USA

   Apprenticeship.gov is a one-stop source to connect career seekers, employers, and education partners with apprenticeship resources. Use their search tool to find out if your apprenticeship program is registered.

2. Wisconsin Department of Workforce Development – Wisconsin Apprenticeship

   Wisconsin apprenticeships are governed by standards set by the Wisconsin Department of Workforce Development - Bureau of Apprenticeship Standards (DWD-BAS). The Wisconsin Department of Workforce Development apprenticeship website provides information about Wisconsin's apprenticeship program and search tools to help you find a program in the state. Contact information can be found online here.

3. Wisconsin Technical College System – Apprenticeships

   Related instruction is a key part of each apprenticeship and is required by Wisconsin apprenticeship law. Related instruction is theoretical and technical and is usually provided by a school in the Wisconsin Technical College System.

###

To learn more about Wisconsin's Edvest 529 College Savings Plan, its investment objectives, risks, charges and expenses see the Plan Description at Edvest.com. Read it carefully. Investments in the plan are neither insured nor guaranteed and there is the risk of investment loss. Wisconsin taxpayers can qualify for a 2024 state tax deduction up to $5,000 annually per beneficiary, for single filer or married couple filing a joint return, from contributions made into an Edvest 529 College Savings Plan. Married couples filing separately may each claim a maximum of $2,500. Prior to investing, check with your home state to learn if it offers tax or other benefits such as financial aid, scholarship funds or protection from creditors for investing in its own 529 plan. If the funds aren't used for qualified higher education expenses, a federal 10% penalty tax on earnings (as well as federal and state income taxes) may apply. Consult your legal or tax professional for tax advice. TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, distributor and underwriter for the Edvest 529 College Savings Plan.

Withdrawals for registered apprenticeship programs can be withdrawn free from federal and Wisconsin income tax. If you are not a Wisconsin taxpayer, these withdrawals may include recapture of tax deduction, state income tax as well as penalties. You should talk to a qualified professional about how tax provisions affect your circumstances.

FPS-3822980CR-E0924W