CCFC Certified College Financial Consultant Exam
Revision Notes and Self-Assessment
CCFC Certified College Financial Consultant Exam – Complete 200+ Question
Bank
American Institute of Certified College Financial Consultants (AICCFC) A+
Graded
SECTION 1: EDUCATION SAVINGS VEHICLES (Questions 1-35)
Question 1
What is a 529 plan?
A) A tax-advantaged savings plan for qualified education expenses
B) A federal student loan program
C) A scholarship program for low-income students
D) A retirement savings account
Correct Answer: A
1
,Explanation: A 529 plan is a tax-advantaged savings plan designed to encourage
saving for future education costs . It is named after Section 529 of the Internal
Revenue Code. 529 plans are sponsored by states, state agencies, or educational
institutions.
Question 2
What are the two types of 529 plans?
A) Prepaid tuition plans and education savings plans
B) Taxable and tax-deferred plans
C) Public and private plans
D) Federal and state plans
Correct Answer: A
Explanation: The two types of 529 plans are prepaid tuition plans (which allow you
to prepay tuition at current rates) and education savings plans (which allow you to
invest contributions for future education expenses) . Prepaid tuition plans are
offered by states and some private colleges. Education savings plans are offered by
states and are the more common type.
2
,Question 3
Which of the following is a qualified education expense for 529 plan distributions?
A) Room and board
B) Travel expenses
C) Entertainment expenses
D) Sports equipment
Correct Answer: A
Explanation: Qualified education expenses for 529 plans include tuition, fees,
books, supplies, equipment, and room and board (if the student is enrolled at least
half-time) . Travel expenses and entertainment are not qualified expenses. Sports
equipment is generally not qualified unless required for a course.
Question 4
What is the contribution limit for 529 plans?
A) $10,000 per year
B) $50,000 per year
3
, C) No annual limit, but total account limits vary by state (typically $300,000-
$500,000)
D) $100,000 total
Correct Answer: C
Explanation: There is no annual contribution limit for 529 plans, but total account
limits vary by state, typically ranging from $300,000 to $500,000 . Contributions
are made with after-tax dollars. Some states offer tax deductions or credits for
contributions.
Question 5
Are 529 plan earnings taxable when used for qualified education expenses?
A) Yes, fully taxable
B) No, tax-free when used for qualified expenses
C) Only state taxable
D) Only federally taxable
Correct Answer: B
4
Revision Notes and Self-Assessment
CCFC Certified College Financial Consultant Exam – Complete 200+ Question
Bank
American Institute of Certified College Financial Consultants (AICCFC) A+
Graded
SECTION 1: EDUCATION SAVINGS VEHICLES (Questions 1-35)
Question 1
What is a 529 plan?
A) A tax-advantaged savings plan for qualified education expenses
B) A federal student loan program
C) A scholarship program for low-income students
D) A retirement savings account
Correct Answer: A
1
,Explanation: A 529 plan is a tax-advantaged savings plan designed to encourage
saving for future education costs . It is named after Section 529 of the Internal
Revenue Code. 529 plans are sponsored by states, state agencies, or educational
institutions.
Question 2
What are the two types of 529 plans?
A) Prepaid tuition plans and education savings plans
B) Taxable and tax-deferred plans
C) Public and private plans
D) Federal and state plans
Correct Answer: A
Explanation: The two types of 529 plans are prepaid tuition plans (which allow you
to prepay tuition at current rates) and education savings plans (which allow you to
invest contributions for future education expenses) . Prepaid tuition plans are
offered by states and some private colleges. Education savings plans are offered by
states and are the more common type.
2
,Question 3
Which of the following is a qualified education expense for 529 plan distributions?
A) Room and board
B) Travel expenses
C) Entertainment expenses
D) Sports equipment
Correct Answer: A
Explanation: Qualified education expenses for 529 plans include tuition, fees,
books, supplies, equipment, and room and board (if the student is enrolled at least
half-time) . Travel expenses and entertainment are not qualified expenses. Sports
equipment is generally not qualified unless required for a course.
Question 4
What is the contribution limit for 529 plans?
A) $10,000 per year
B) $50,000 per year
3
, C) No annual limit, but total account limits vary by state (typically $300,000-
$500,000)
D) $100,000 total
Correct Answer: C
Explanation: There is no annual contribution limit for 529 plans, but total account
limits vary by state, typically ranging from $300,000 to $500,000 . Contributions
are made with after-tax dollars. Some states offer tax deductions or credits for
contributions.
Question 5
Are 529 plan earnings taxable when used for qualified education expenses?
A) Yes, fully taxable
B) No, tax-free when used for qualified expenses
C) Only state taxable
D) Only federally taxable
Correct Answer: B
4
