Which of the following statements regarding a Coverdell Education Savings Account (CESA) is incorrect? Multiple Choice In order to be tax-free, distributions must be used exclusively to pay the qualified education expenses of the beneficiary. Any person can contribute to a CESA, even if he or she is not related to the beneficiary. Contributions to a CESA are not tax-deductible. A person can contribute to only one CESA during each tax year.
Which of the following statements regarding a Coverdell Education Savings Account (CESA) is incorrect? Multiple Choice In order to be tax-free, distributions must be used exclusively to pay the qualified education expenses of the beneficiary. Any person can contribute to a CESA, even if he or she is not related to the beneficiary. Contributions to a CESA are not tax-deductible. A person can contribute to only one CESA during each tax year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Which of the following statements regarding a Coverdell Education Savings Account (CESA) is incorrect?
Multiple Choice
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In order to be tax-free, distributions must be used exclusively to pay the qualified education expenses of the beneficiary.
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Any person can contribute to a CESA, even if he or she is not related to the beneficiary.
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Contributions to a CESA are not tax-deductible.
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A person can contribute to only one CESA during each tax year.
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