SIE Exam Question 309: Answer and Explanation

Question: 309

Dollar limits on 529 plan contributions per beneficiary are set by

• A. the Municipal Securities Rulemaking Board.
• B. the federal government.
• C. the College Board.
• D. various states.

Correct Answer: D

Explanation:

D - There are no federal dollar limits on contributions as long as they do not exceed "the amount necessary to provide for the qualified education expenses of the beneficiary." Many states do impose dollar limits on total contributions made on behalf of one beneficiary.