SIE (Securities Industry Essentials) Practice Exam 2025 - Free SIE Practice Questions and Study Guide

Question: 1 / 400

Which of the following is a consideration a registered representative should explain about a Coverdell ESA?

Income eligibility restrictions to contribute to the account

A registered representative should explain income eligibility restrictions for contributing to a Coverdell ESA because it is an important factor to consider when opening this type of account. B is incorrect as there are income eligibility restrictions for contributing to this account. C is incorrect as there are contribution limits for a Coverdell ESA. D is incorrect as a Coverdell ESA offers tax advantages. It is important for a registered representative to fully explain all aspects of a Coverdell ESA to their clients in order to make informed decisions about their investments.

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No restrictions based on income

Unlimited contribution amounts

No tax advantages

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