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

Disable ads (and more) with a membership for a one time $2.99 payment

Enhance your competence for the Series 6 Exam. Study with expertly crafted multiple-choice questions, each complete with hints and detailed explanations. Elevate your performance and pass the exam with confidence.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Can clients choose to invest in an out-of-state 529 plan?

Yes
No
Only with restrictions
Only if in-state plans are unavailable

The correct answer is: Yes

Clients are allowed to invest in an out-of-state 529 plan. This flexibility is a key feature of 529 plans, which are designed to help families save for education expenses. Each state offers its own 529 plan, and while many states have specific benefits or tax advantages for residents who invest in their home state's plan, individuals are not restricted solely to in-state options. This means that if a client finds an out-of-state plan that better meets their investment goals or offers more favorable features, they can choose to invest in it without facing any restrictions. This option is beneficial because it allows clients to compare various plans across states to find one that offers the best investment options, lower fees, or better performance. Additionally, all contributions to 529 plans, regardless of the state of the plan, can grow tax-free, thus providing a significant advantage in saving for qualified educational expenses.