Section 529 plans have the following benefits:
I) Education expenses qualifying for the Lifetime Learning Credit can be paid with plan withdrawals
II) The contributor retains ownership rights and the money remains in his/her estate
III) Tuition credits can be transferred to another qualified tuition program for the same beneficiary
The correct answer is:

Question

Section 529 plans have the following benefits:
 I) Education expenses qualifying for the Lifetime Learning Credit can be paid with plan withdrawals
II) The contributor retains ownership rights and the money remains in his/her estate
III) Tuition credits can be transferred to another qualified tuition program for the same beneficiary
The correct answer is:

Quizplus · Accepted Answer

Choice C is correct because it includes the benefits of paying for education expenses that qualify for the Lifetime Learning Credit with plan withdrawals and the ability to transfer tuition credits to another qualified tuition program for the same beneficiary. Choice B is not correct because it only includes the benefit of the contributor retaining ownership rights and the money remaining in their estate. Choice D is not correct because it only includes the benefit of education expenses qualifying for the Lifetime Learning Credit being paid with plan withdrawals. Choice A is not correct because all three benefits listed are actual benefits of Section 529 plans.

Section 529 Plans Have the Following Benefits