Investment Company and Variable Contracts Products Representative (Series 6)Practice Exam

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May a person contribute to her own 529 plan?

Yes, but with limits
No, it is prohibited
Yes, but with penalties
Yes, without restrictions

The correct answer is: No, it is prohibited

A person can indeed contribute to her own 529 plan. This type of investment account allows individuals to save for education expenses in a tax-advantaged way. Contributions can come from various sources, including the account owner herself, family members, and friends, and there are no restrictions on who can contribute to the plan, as long as the contributions stay within the annual gift tax exclusion limits. While there are annual contribution limits and lifetime limits to consider, there are no penalties associated with making contributions to an own 529 account. The flexibility of 529 plans in terms of contributions makes them an attractive option for education funding. Therefore, the idea that it is prohibited to contribute to one’s own 529 plan is incorrect.