Which of the Following Statements About Saving for College Is

question 128

Multiple Choice

Which of the following statements about saving for college is not true?

• A)The Coverdell Education Savings Account works just like the Roth IRA,except with respect to contributions.
• B)If the money in a Coverdell Education Savings Account isn't used for college,taxes and penalties may apply.
• C)Some 529 plans are prepaid college tuition plans.
• D)You must open a 529 plan sponsored by the state in which you reside.
• E)529 college savings plans offer more flexibility than prepaid college tuition plans.

Grasp the rules and limits regarding contributions to and deductions for Keogh plans and SEP plans.

Recognize the nondiscriminatory requirements for qualified pension plans.

Understand the tax implications of distributions from retirement plans and other tax-deferred planning instruments.

Identify the maximum contribution limits for 401(k) plans and the conditions under which contributions are made.

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Definitions:

Groupthink

An occurrence in a group setting where the urge for consensus or uniformity leads to unreasonable or maladaptive choices in decision-making.

Direct Pressure

A form of influence where individuals are explicitly urged or coerced by others to engage in certain behaviors or make specific choices.

Groupthink

A psychological phenomenon that occurs within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Agreement-At-Any-Cost

A situation where individuals prioritize reaching an agreement over the quality or implications of the agreement itself.