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Earnings from Internal Revenue Code Section 529 Plans and Coverdell

question 104

True/False

Earnings from Internal Revenue Code Section 529 plans and Coverdell education savings accounts are excluded from gross income if the earnings are used to pay for qualifying educational expenditures for college students (and not for elementary or secondary education).


Definitions:

Administrative Fee

Charges apart from the basic services or goods provided, often included to cover the cost of administrative expenses.

Taft-Hartley Act

A U.S. federal law that restricts the activities and power of labor unions.

Labor-Management Relations Act

A statute that regulates the relations between employers and organized labor, including collective bargaining, strikes, and the rights of union members.

Collective Bargaining

A process of negotiation between employers and a group of employees aimed at reaching agreements to regulate working conditions.

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