Score: 72%
1. When choosing between a traditional 529 college savings plan and a prepaid 529 tuition plan, which is a better option?
c) Both plans offer the same tax advantages
2. When selecting a 529 plan are you required to invest in your state's plan?
b) No, you can enroll in any state's plan that best fits your needs
3. What is the maximum income the account owner can make in order to contribute to a 529 plan?
d) There is no income limitation
4. Can 529 plan funds be used at any college or university in the country?
c) It is a case by case basis depending on the school, so best to check with the school administration before you apply
The correct answer is: b) Any eligible educational institution in the U.S. or abroad will accept funds from your 529 plan
5. Is there a minimum contribution to open a 529 plan?
c) No, you don't have to put anything in your account to begin
The correct answer is: a) It depends on the plan, but most minimum contributions are low, if there is one at all
6. Will starting a 529 account affect a student’s chances of receiving student aid?
a) Yes, but the effect is negligible
7. Once I've decided what plan is best for me how do I set up my plan?
d) All of the above