Which of the Following Is a Feature of an Education

question 106

Multiple Choice

Which of the following is a feature of an Education IRA (or Coverdell Education Savings Account) ?

• A) Tax-deferred interest and earnings
• B) 10% early withdrawal penalty waiver when money is used for higher-education
• C) Annual limit on individual contributions
• D) Non-deductible contributions
• E) All of these are features of an Education IRA.

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Definitions:

Waterfall

A model or process that visually represents the sequential and cumulative effect of a series of transactions or events, often used in project management and finance.

Rest

The remaining part of something, often used when dividing or after subtracting a portion.

Ounces

A unit of weight used primarily in the United States, part of the imperial and US customary systems, equivalent to 28.35 grams.

Gold

a dense, malleable, yellow precious metal that is often used in jewelry, currency, and as an investment.