When 529 Plan Distributions Are Not Used for Qualified Higher

question 34

Multiple Choice

When 529 plan distributions are not used for qualified higher education expenses, these distributions are subject to an additional penalty of:

• A) 5%
• B) 10%
• C) 15%
• D) 25%
• E) None of these

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Definitions:

Pellagra

Pellagra is a deficiency disease resulting from a lack of niacin (vitamin B3) in the diet, characterized by dermatitis, diarrhea, dementia, and eventually death if untreated.

Thiamine

Thiamine, also known as vitamin B1, is a water-soluble vitamin essential for the metabolism of carbohydrates and the functioning of the nervous system.

Vitamin K

A fat-soluble vitamin essential for blood clotting and healthy bone metabolism.

Calcium

A chemical element with the symbol Ca, which is essential for living organisms, primarily in cell physiology and bone formation.