Which of the following statements is not a characteristic of a 529 plan?

A 529 plan is designed specifically for education savings and has specific guidelines that govern it. One of the key characteristics of a 529 plan is that contributions are indeed limited to certain amounts, often defined by state regulations and IRS guidelines to prevent tax abuse while still enabling significant savings for future education costs. These limits can vary by state but generally are set to avoid exceeding a threshold that would categorize the account for estate tax purposes.

In addition, while the growth of the account is tax-free, and withdrawals for qualified education expenses are also tax-free, there is no provision for unlimited contributions. Each state sets a maximum contribution limit, ensuring that contributions remain within acceptable boundaries to maintain the plan's favorable tax status. This characteristic makes choice B incorrect, as it suggests that there are no limitations on contributions, which contradicts the structured nature of 529 plans.