The main structures and tax features of 529 education savings programs.
529 plans are the main education-savings product on Series 6. Questions here usually test whether you understand the account purpose, tax-advantaged growth, control of the account, and what happens if the funds are not used for qualified education expenses.
The exam often rewards a practical understanding rather than a technical recital. You should know why a 529 plan is attractive, when it fits, and what features distinguish it from retirement accounts or ordinary custodial arrangements.
| 529 feature | Why it matters on the exam |
|---|---|
| Tax-advantaged growth | Explains why the account is used for education planning |
| Qualified withdrawals | Determines whether the favorable treatment is preserved |
| Owner control | The person funding the account may retain control over changes |
| Beneficiary flexibility | Changes in beneficiary or use can affect planning decisions |
Think of 529 plans as education-specific tax wrappers with control features that make them different from ordinary investment accounts.