Which of the Following Statements About Saving for College Is

question 128

Multiple Choice

Which of the following statements about saving for college is not true?

• A)The Coverdell Education Savings Account works just like the Roth IRA,except with respect to contributions.
• B)If the money in a Coverdell Education Savings Account isn't used for college,taxes and penalties may apply.
• C)Some 529 plans are prepaid college tuition plans.
• D)You must open a 529 plan sponsored by the state in which you reside.
• E)529 college savings plans offer more flexibility than prepaid college tuition plans.

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Definitions:

ADH

Antidiuretic Hormone, also known as vasopressin, a hormone that helps regulate the body's balance of water by reducing the amount of water excreted in urine.

ACTH

Adrenocorticotropic hormone, a polypeptide tropic hormone produced and secreted by the anterior pituitary gland that stimulates the adrenal cortex.

Parathyroid Gland

Gland embedded in the posterior surface of the thyroid gland; it produces parathyroid hormone.

Weakened Bones

A condition, often due to osteoporosis, where bones become fragile and more prone to fractures.