In Which of the Following Situations Is There a 10

question 25

Multiple Choice

In which of the following situations is there a 10% penalty incurred when withdrawing funds in Section 529 plans?

• A)If the withdrawal from the account is due to the death of the designated beneficiary.
• B)If the withdrawal from the account is due to the disability of the designated beneficiary.
• C)Withdrawals of excess funds due to receipt of a scholarship.
• D)Non-college expense withdrawals arising from attendance at a U.S.military academy.
• E)None of the above.

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Definitions:

Price

The amount of money required to purchase a good or service.

Price

The amount of money required to purchase a good or service, often determined by factors like demand, supply, and market competition.

Utility Function

A representation or model used in economics to quantify the satisfaction or happiness a consumer derives from consuming goods and services.

Income

Payment obtained, regularly, for services rendered or from capital investments.