Almost every state has at least one 529 plan. By putting money in the college savings plan, your contributions or the money that you put in are all after tax. C) Withdrawals will be tax-free. Which of the following is accurate concerning 529 college savings plans? Which of the following is a characteristic of the college savings plan See answers (2) Ask for details ; Follow Report Log in to add a comment Answer 1.0 /5 1. A tax-advantaged savings plan designed to encourage saving for future college costs. The money you put into the plan is invested, and as it grows this increase is not taxed. Then, wherever you go to pull that money out all the interest in the earnings that have accumulated from your contributions are completely tax free as long as you use those towards the college education and it is administered only by states . 529 plans may also be used to save and invest for K-12 tuition in addition to college costs. D) None of these. A) deductible as a credit. Rate! B) deductible as an itemized deduction. Legally known as qualified tuition plans, 529 plans are sponsored by states, state agencies, or educational institutions and are authorized by Section 529 of the Internal Revenue Code. 1.0 2 votes 2 votes Rate! D) a college savings plan is a type of QTP where the owner of the account contributes cash to the account so that the contributions can grow tax deferred Answer: C One of the advantages of QTPs (Qualified Tuition Programs, better known as Section 529 Plans) is that the owner-contributor is always in control of the program. With these accounts, you can save money on taxes both when you make your contributions and every year—between now and when you'll need the money. Thanks d. There is no limit on how much can be contributed.

Put those savings toward college or other education goals, and you'll see how much of a difference they make. B) Contributions are nondeductible. There is also a 529 plan operated by a group of private colleges and universities. The 529 plan is a college savings plan, and there are several tax benefits that may apply.

A 529 plan is a college savings plan that offers tax and financial aid benefits. b. a. There are two types of 529 plans: college savings plans and prepaid tuition plans. There are many college savings plans to choose from, one of the easiest is a 529 college savings plan. 1Anonymous11 +2 Kaneppeleqw and 2 others learned from this answer add the choices please. Interest penalties for early withdrawal of savings from certificates of deposit are. Earnings are tax-free when used for qualifying educational expenses. c. They have no impact on qualifying for financial aid.