Asked by Nguyen Hien Minh Quan on Jun 27, 2024
Verified
Regarding a Coverdell Education Savings Account:
A) Distributions are tax-free to the beneficiary if they are used for his or her qualified education expenses.
B) Qualified education expenses include required tuition,fees,books,supplies,and equipment at an eligible educational institution.
C) Qualified expenses must be reduced by scholarships or other tax-free income.
D) All of these.
Coverdell Education
A savings account designed to help families pay for education expenses, including k-12 and college costs, with tax-free earnings.
Qualified Education Expenses
are costs related to education, like tuition and fees, required for enrollment or attendance at an eligible educational institution.
Tax-Free
Tax-free refers to certain financial products or transactions that are not subject to tax by the government, such as certain municipal bonds or qualified withdrawals from a Roth IRA.
- Define the eligibility parameters and the upper limits of contributions for various retirement and educational savings accounts.
Verified Answer
Learning Objectives
- Define the eligibility parameters and the upper limits of contributions for various retirement and educational savings accounts.
Related questions
The Retirement Savings Contributions Credit Is Available Regardless of the ...
Which of the Account Contributions Qualify for the Retirement Savings ...
Distributions from a Coverdell Education Savings Account Are Tax-Free to ...
Harold, Just Turned 27, Wants to Accumulate an Amount in ...
Mrs Clare Wants to Set Up a College Fund for ...