All of the following are true about 2021 distributions and contributions to Section 529 plans EXCEPT: a) A deduction of up to $10,000 per taxpayer ($20,000 MFJ) is available on the federal income tax return for contributions. b) Distributions may be used to pay the costs of participation in a registered apprenticeship program. c) Distributions may be used to pay up to $10,000 in qualified student loans. d) Nonqualified distributions are subject to a penalty tax of 10% of the amount included in income.
All of the following are true about 2021 distributions and contributions to Section 529 plans EXCEPT: a) A deduction of up to $10,000 per taxpayer ($20,000 MFJ) is available on the federal income tax return for contributions. b) Distributions may be used to pay the costs of participation in a registered apprenticeship program. c) Distributions may be used to pay up to $10,000 in qualified student loans. d) Nonqualified distributions are subject to a penalty tax of 10% of the amount included in income.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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All of the following are true about 2021 distributions and contributions to Section 529 plans EXCEPT:
a) A deduction of up to $10,000 per taxpayer ($20,000 MFJ) is available on the federal income tax return for contributions.
b) Distributions may be used to pay the costs of participation in a registered apprenticeship program.
c) Distributions may be used to pay up to $10,000 in qualified student loans.
d) Nonqualified distributions are subject to a penalty tax of 10% of the amount included in income.
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