Which of the Following Statements Regarding Coverdell Education Savings Accounts

question 92

Multiple Choice

Which of the following statements regarding Coverdell Education Savings Accounts is incorrect,disregarding any AGI limits?

• A)Distributions cannot be used for elementary and secondary education expenses.
• B)Distributions to the beneficiary are not taxable as long as they are used for tuition,fees,room and board.
• C)Contributions can be made until the beneficiary reaches 18.
• D)Contributors can make nondeductible contributions of up to $2,000 for each beneficiary.

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Definitions:

Exporter

A person or entity that sells goods or services produced in one country to another country.

Shoes

Footwear made from various materials, designed to protect and comfort the human foot while doing various activities.

Economic Well-Being

A measure of the financial health and stability of an individual, community, or nation, typically evaluated by factors such as income, employment, and access to resources.

Importer

An individual or company that buys goods from foreign countries for resale in its own market.