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Which of the Following Statements Regarding a Coverdell Education Savings

Question 59

Multiple Choice

Which of the following statements regarding a Coverdell Education Savings Account (CESA) is incorrect?


A) In order to be tax-free,distributions must be used exclusively to pay the qualified education expenses of the beneficiary.
B) Any person can contribute to a CESA,even if he or she is not related to the beneficiary.
C) A person can contribute to only one CESA during each tax year.
D) Contributions to a CESA are not tax-deductible.

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