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:

Independent Random Samples

Samples selected from a population in such a way that each individual sample is chosen randomly and independently of each other.

Population Means

The average value of a numerical characteristic in a population, representing the central tendency of the population.

Confidence Interval

A confidence interval is a range of values, derived from sample statistics, used to estimate the true value of a population parameter with a certain degree of confidence.

Normally Distributed

Describes a type of continuous probability distribution for a real-valued random variable where the data forms a symmetric, bell-shaped curve about the mean.