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Which of the Following Statements Regarding Coverdell Education Savings Accounts

Question 102

Multiple Choice

Which of the following statements regarding Coverdell Education Savings Accounts is incorrect, disregarding any AGI limits? Which of the following statements regarding Coverdell Education Savings Accounts is incorrect, disregarding any AGI limits?   A)  Contributions can be made until the beneficiary reaches 18. B)  Contributors can make nondeductible contributions of up to $2,000 for each beneficiary. C)  Distributions cannot be used for elementary and secondary education expenses. D)  Distributions to the beneficiary are not taxable as long as they are used for tuition, fees, room and board.


A) Contributions can be made until the beneficiary reaches 18.
B) Contributors can make nondeductible contributions of up to $2,000 for each beneficiary.
C) Distributions cannot be used for elementary and secondary education expenses.
D) Distributions to the beneficiary are not taxable as long as they are used for tuition, fees, room and board.

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