529 plans may do all of the following except: a) As a prepaid tuition plan ...

By Investopedia Staff AAA
Q:
529 plans may do all of the following except:
a) As a prepaid tuition plan, a 529 locks in a current tuition rate at a specific school
b) As a college savings plan, a 529 establishes a savings account to defray the college costs
c) All contributions are made with after tax dollars and are allowed to grow tax deferred
d) All assets withdrawn are taxed as normal income
A:

The correct answer is c

Most states allow the assets to be withdrawn tax-free.

Have a Financial Question?

RELATED FAQS

  1. Sometimes investment banking firms allocate shares of hot issues to the personal ...

    The correct answer is a) Spinning is the act of selling hot issues to the personal accounts of corporate officers which in ...
  2. Donald has been putting aside money for his retirement into a Roth IRA for six years.  Although ...

    The correct answer is A) In a Roth IRA, there is no required distribution date as there is in a traditional IRA.
  3. A 7-year, 6% coupon callable bond is currently trading at 96.25.  The ...

    Free info on financial certification exams including study guides, exam questions, and much more!
  4. According to SEC Release IA-1092, which of the following would NOT qualify as an ...

    The correct answer is C). SEC Release IA-1092 considers financial planners, pension consultants and sports and entertainment ...
RELATED TERMS
  1. No results found.

You May Also Like

Related Articles
  1. No results found.
Trading Center