What Is a Disadvantage of the "Prepaid College Tuition Plan

question 139

Multiple Choice

What is a disadvantage of the "Prepaid College Tuition Plan" version of the 529 plan?

• A)Distributions before age 59 1/2 incur a 10% tax penalty.
• B)They generally guarantee that your child will be covered only if he or she attends a public in-state university or college.
• C)They allow greater flexibility than the College Savings Plans.
• D)All of the above.
• E)None of the above.

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Definitions:

Fixed-Quantity Models

Inventory control models that trigger orders of a predetermined quantity whenever the inventory level reaches a specific reorder point.

Stockout

A situation in inventory management when a requested product is not available in stock.

Review Period

A predefined interval of time during which performance, progress, or quality is evaluated or assessed.

Standard Deviation

A statistical measurement that denotes the variability or dispersion of a set of data points.