Can Truckers Use a 529 Plan to Pay for CDL School or Truck Driving Training?
If you’ve got money sitting in a 529 plan and you’re eyeing CDL school — or helping your kid get started in the trucking game — the big question is:
Can those funds cover truck driving school tuition?
Thanks to recent changes in federal law, the answer is yes — but only if certain boxes are checked. So let me show you exactly how it works, what’s covered, and how to avoid triggering penalties or taxes.
🧠 What Is a 529 Plan?
A 529 plan is a tax-advantaged savings account designed to pay for education-related expenses. Money grows tax-free, and withdrawals are also tax-free as long as the funds are used for qualified education costs.
Traditionally, 529 plans were used for college, but federal updates in recent years — and the One Big Beautiful Bill signed in July 2025 — have expanded the list of eligible training programs.
🚛 So Can You Use It for CDL Training?
Yes — under the July 4, 2025 expansion, 529 plans now include workforce and vocational training programs like CDL school.
Here’s what qualifies:
- The CDL program must be part of a Title IV eligible institution, or…
- It must be a registered workforce credential program under the Workforce Innovation and Opportunity Act (WIOA).
📌 Source: SavingForCollege.com – Can You Use a 529 for Trade School?
This means if you’re attending an approved truck driving school — or helping someone else attend — your 529 plan can pay for:
- ✅ Tuition
- ✅ Licensing or certification exam fees (like the CDL test)
- ✅ Required course materials
- ✅ Books or online training tools
📌 Source: IRS.gov – 529 Plans: Questions and Answers
👨👩👦 Who Can Use It?
You don’t have to be a college student. As long as you’re the beneficiary on the 529, or helping someone who is, you’re eligible.
That could be:
- Your child going to a CDL school after high school
- A spouse making a career switch
- You — if you’re ready to transition from another job into trucking
And here’s a pro tip from real-world forums like TruckingTruth:
“Short answer is YES. My daughter used hers for CNC training. CDL is a vocation. It qualifies.”
⚠️ What Doesn’t Qualify?
Before you pull money from a 529, make sure the expense falls within these guidelines. These will not qualify:
- ❌ Travel costs to/from CDL school
- ❌ Meals or housing (unless part of full-time campus-based training)
- ❌ Gas or maintenance on your personal vehicle
- ❌ Equipment or gear not required by the course
If you use 529 funds on non-qualified expenses, the IRS will hit you with:
- 🔺 10% penalty on the amount withdrawn
- 🔺 Income tax on the earnings portion
📌 Source: IRS.gov – Topic No. 313 Qualified Tuition Programs (QTPs)
🗺️ What About State Rules?
Federally, you’re good to go if the program qualifies. But some state 529 plans haven’t fully updated their rules yet.
For example, North Carolina’s NC 529 Plan follows federal guidelines, but still encourages account holders to verify training eligibility before withdrawal.
📌 Source: CFNC.org – Qualified Expenses
So you want to make sure:
- Your 529 plan provider confirms the training is eligible
- You get documentation from the CDL school showing it’s Title IV or WIOA compliant
✅ Real-World Use Case for Truckers
Let’s say your son wants to attend a WIOA-eligible CDL training center after high school.
Instead of taking out a high-interest loan, you use your 529 account to cover the cost:
- 💰 $4,500 tuition
- 💰 $225 licensing and exam fees
- 💰 $300 course materials
You just used tax-free money to launch a career that could start earning $50K–$75K in the first year.
📣 Final Word from Freight Pro Hub
This law is a game-changer for blue-collar families who’ve been told that 529s are “just for college kids.”
If you’re a trucker or family member trying to stretch every dollar and launch a solid career path — CDL training is now 529-approved (if done right).
💬 “Got questions about whether your plan qualifies? I’m not a securities advisor yet, but I’ll help you find the right info or connect you to someone who can walk you through it step-by-step.”
