Asked by Nguyen Hien Minh Quan on Jun 27, 2024

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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.
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ZK
Zybrea KnightJul 03, 2024
Final Answer :
D
Explanation :
All of these statements are true regarding Coverdell Education Savings Accounts. Distributions are tax-free if used for qualified education expenses, which include tuition, fees, books, supplies, and equipment at eligible institutions. Qualified expenses must be reduced by scholarships or other tax-free income received.