Which of the Following Is Not a Correct Characteristic of a Coverdell

question 95

Multiple Choice

Which of the following is not a correct characteristic of a Coverdell Education Savings Account?

• A)It may be used to fund an elementary or primary school education.
• B)The child will not owe taxes on any withdrawal made to pay for qualified educational expenses.
• C)There is a 10% penalty on early withdrawals before the child reaches age 17.
• D)The amounts deposited in an Education IRA are not tax deductible.

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Definitions:

Common Understanding

A mutual agreement or shared knowledge among a group of individuals, often essential for effective communication and collaboration.

Project Purpose

The main goal or objective that a project aims to achieve, clearly defining the project's rationale and expected outcomes.

Anchoring Statement

A statement or reference point that is used in negotiation or decision-making processes to set the tone or basis from which to begin discussions.

Purpose Statements

Concise statements that outline the reasons or objectives for the existence of a project, document, or organization.