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Which of the following is/are true regarding 529 Savings Plans? Qualified distributions from a 529 plan...

Which of the following is/are true regarding 529 Savings Plans?

Qualified distributions from a 529 plan can be used to pay for a computer.

There are no income limitations (phase-outs) on who can contribute to a 529 Savings Plan.

A federal income tax deduction is not permitted for contributions to a 529 Savings Plan.

All of the above.

None of the above
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Answer #1

Answer: Option iv) All of the above

Explanation:

A 529 savings plan is a tax-advantaged savings plan for future education costs.

True regarding 529 savings plan are follows:

  • Qualified distributions from a 529 plan can be used to pay for a computer.
  • There are no income limitations (phase-outs) on who can contribute to a 529 Savings Plan.
  • A federal income tax deduction is not permitted for contributions to a 529 Savings Plan.

Therefore, all the given statements are true.

Thus, option iv) all of the above is correct answer.

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