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:

Cultural Norms

Shared expectations and rules that guide behavior of people within social groups.

Psychological Abnormality

Behaviour, speech, or thought that impairs the ability of a person to function in a way generally expected of him or her, in the context in which the unusual functioning occurs.

Sociocultural Factors

Influences that arise from the societal and cultural contexts of people's lives affecting their thoughts, behaviors, and emotions.

Bodily Fluids

Liquids produced by the body to carry out its functions, including blood, saliva, urine, and sweat.