Which of the following is accurate concerning 529 college savings plans?
A) Contributions are tax deductible for both state and federal income taxes.
B) Earnings are tax-free when used for qualifying educational expenses.
C) They have no impact on qualifying for financial aid.
D) There is no limit on how much can be contributed.
E) All of the above.

Question

Quizplus · Accepted Answer

Contributions to 529 plans are not tax deductible, but earnings do grow tax-free when used for qualifying educational expenses. Contributions to a 529 plan can affect financial aid eligibility, but the impact is generally minimal. However, there are limits on how much can be contributed to a 529 plan, and these vary by state.

Which of the Following Is Accurate Concerning 529 College Savings