529 savings plans are state-sponsored education savings accounts that offer tax-advantaged growth. Key features include:
Contributions are not federally tax deductible (some states offer state-level deductions).
No income limitations for contributions.
The account owner, not the beneficiary, controls the plan.
Assets can be transferred tax-free to another family member’s 529 plan.
D is correctbecause tax-free rollovers are allowed for family members of the current beneficiary.
Ais incorrect as contributions are not universally tax deductible.
Bis incorrect as there are no income limitations for contributing.
Cis incorrect because the account owner, not the beneficiary, controls the assets.
[Reference:IRS Publication 970: Tax Benefits for Education, ]
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