Martha Participated in a Qualified Tuition Program for the Benefit

question 38

Multiple Choice

Martha participated in a qualified tuition program for the benefit of her son. She invested $6,000 in the fund. Four years later her son withdrew $8,000, the entire balance in the program, to pay his college tuition.

• A) Martha is not required to include the $2,000 ($8,000 - $6,000) in her gross income when the funds are used to pay the tuition.
• B) Martha's son must include the $2,000 ($8,000 - $6,000) in his gross income when the funds are used to pay the tuition.
• C) Martha must include $8,000 in her gross income.
• D) Martha's son must include $8,000 in his gross income.
• E) None of these.

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Definitions:

Factual Information

Data, details, or knowledge based on real, observable events or items, not influenced by emotions or personal opinions.

Autobiographical Memory

Memory of particular events from one’s own life.

Biographical Memory

A type of memory involving the recollection of personal experiences and events in one's life.

Personal Events

Specific occurrences or experiences in an individual's life that have significant personal implications, impact or meaning.