Starting your real estate career is an investment in your future, but the upfront cost of pre-licensing education can feel like a hurdle. Here's some good news:recent federal rule changes have made it easier to use tax-advantaged accounts to fund your professional licensing education.
If you have money sitting in a 529 plan or Roth IRA, you might be able to put it toward your AceableAgent course. And considering that real estate agents can earn six-figure incomes in many markets, this education investment often pays for itself quickly. Here's how both options work and when each one makes sense.
529 Plans: Now Covering Professional Licenses
For years, 529 education savings plans were primarily for college expenses. But starting July 4, 2025, new federal rules expanded what qualifies as an eligible expense.
What's now covered:
Tuition for state-approved professional licensing programs (including real estate pre-licensing courses)
Required course materials and fees
Licensing exam preparation and testing fees
Books and supplies needed for the program
How it works for AceableAgent students: If your course meets federal "Qualified Education Expense" requirements, you can withdraw 529 funds tax-free to cover your pre-licensing education. This is especially helpful if you have unused college savings or were unsure whether your child would attend a traditional four-year school.
Important considerations:
Your specific course must be approved by your state's real estate commission
Each state has different rules about what qualifies
Some states may still tax withdrawals for non-college expenses (even if the federal government doesn't)
Check with your 529 plan administrator before making any withdrawals
Roth IRAs: The Flexible Alternative
A Roth IRA is primarily a retirement account, but it's surprisingly flexible when you need to access funds for education or career training.
Here's how it works:
You contribute after-tax dollars (no immediate tax break)
Your money grows tax-free
You can withdraw your original contributions anytime without taxes or penalties
Earnings can be withdrawn penalty-free for qualified education expenses (though you may owe income tax on the growth)
For your AceableAgent course:
Withdraw your original contributions without any penalties
Use earnings for qualified education expenses (penalty-free, but may owe income tax)
No need to verify course eligibility like with 529 plans
Works well if you don't have a 529 but want flexibility for both career and retirement goals
The trade-off: Money you withdraw now won't benefit from decades of tax-free growth, so you're giving up future retirement savings.
When to Use Each Option
Choose a 529 plan if:
You have unused education savings from college planning
Your AceableAgent course qualifies under your state's rules
You want to maximize education-specific tax benefits
You have adult children with leftover 529 balances
Choose a Roth IRA if:
You want maximum flexibility (career training now, retirement later)
You don't have a 529 plan
You're uncertain about course eligibility requirements
You prefer simpler withdrawal rules
Consider other options first if:
AceableAgent offers payment plans that fit your budget
Your employer offers tuition reimbursement for professional development
You can cover the course cost without touching long-term savings
Before You Decide
Both accounts are powerful tools, but they're designed for long-term goals. Before using either for your course:
Check if you need to. AceableAgent offers flexible payment options that might work better than touching your savings.
Verify the rules. Tax laws are complex and change frequently. Confirm current requirements with your account administrator or a financial advisor.
Consider the opportunity cost. Money used for your course today won't grow for your future goals.
Document everything. Keep records of course payments and account withdrawals for tax purposes.
Your Next Move
Your real estate education is an investment that can pay dividends for decades. Whether you use a 529 plan, Roth IRA, or simple monthly payments, the important thing is getting started.
These tax-advantaged accounts can make your career transition smoother, but they're not your only option. The goal is launching your real estate career without unnecessary financial stress—especially when many agents earn well above the national average once they're established.
Ready to start your pre-licensing education? Explore AceableAgent's course options and find the learning path that fits both your schedule and your budget.
Disclaimer: This article provides general information about 529 plans and Roth IRAs. Tax rules are complex and vary by state. Consult with a qualified financial advisor or tax professional for advice specific to your situation.