semplr.

Exams · Certifications · Licensing

FINRA Series 7 General Securities Representative Exam

3. Provides Information, Makes Recommendations, Transfers Assets / Education savings: practice questions

Our FINRA Series 7 bank has 6 questions on this topic. Here are 3 of them with answers; the full mock exam draws from every topic, like the real one.

Start the free mock exam

Question 1

For 2026, using the five-year election, one donor can contribute to a 529 plan for one beneficiary without using the lifetime gift exemption up to:

  1. $19,000
  2. $95,000
  3. $100,000
  4. $90,000
Show the answer

B. $95,000 — The 2026 annual gift exclusion is $19,000; the 5-year election allows 5 x $19,000 = $95,000 at once.

Question 2

Starting in 2026, the maximum tax-free 529 plan withdrawal per student per year for K-12 expenses is:

  1. $20,000
  2. $19,000
  3. $10,000
  4. $5,000
Show the answer

A. $20,000 — The 2025 budget law (P.L. 119-21) raised the K-12 limit from $10,000 to $20,000 per year starting in 2026.

Question 3

Which statement about a Coverdell education savings account is accurate?

  1. Total contributions for a beneficiary are limited to $2,000 per year
  2. There is no age limit for contributions to the beneficiary
  3. It may be opened only by the beneficiary's parents
  4. Contributions are deductible on the federal return
Show the answer

A. Total contributions for a beneficiary are limited to $2,000 per year — Coverdell ESAs allow $2,000 per beneficiary per year, nondeductible, generally until the beneficiary turns 18, subject to income limits.

More FINRA Series 7 topics