Section 529 plans, UGMA/UTMA and Coverdell ESAs share the following features:
I. There is no age limitation for contributions
II. Funds can be used for child's or parent's educational expenses
III. Investments are tax-deferred
IV. These plans set no income limitations
The correct answer is:

Question

Section 529 plans, UGMA/UTMA and Coverdell ESAs share the following features: 
I. There is no age limitation for contributions
II. Funds can be used for child's or parent's educational expenses
III. Investments are tax-deferred
IV. These plans set no income limitations
The correct answer is:

Quizplus · Accepted Answer

Section 529 plans, UGMA/UTMA accounts, and Coverdell ESAs do not all share the features listed. Specifically, Coverdell ESAs have income limitations for contributors, and UGMA/UTMA accounts do not have the primary purpose of funding education, thus not all funds can be used for educational expenses without potential tax implications. Additionally, there are age limitations for contributions to Coverdell ESAs.

Section 529 Plans, UGMA/UTMA and Coverdell ESAs Share the Following