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Any Distribution from a Qualified Tuition Plan Not Used for Qualified

question 1451

True/False

Any distribution from a qualified tuition plan not used for qualified higher education expenses is both included in income and subject to a 10% penalty.


Definitions:

Overdraft Protection

Overdraft protection is a banking service that prevents checks, ATM withdrawals, and other transactions from causing an account's balance to fall below zero by advancing money or covering the shortfall.

UCC

Uniform Commercial Code; a comprehensive set of laws governing commercial transactions in the United States.

Dishonor

In financial contexts, the refusal or inability of a party to pay a debt when due or to accept a bill of exchange when presented.

Material Addition

An amendment or addition to a contract that considerably changes the terms or obligations originally agreed upon.

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