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:

Bureaucratization

The increase and imposition of complex administrative rules, procedures, and structures within an organization or society.

Structural Conduciveness

The extent to which social structures allow for, or facilitate, certain behaviors or developments.

Social Control

Mechanisms, strategies, and institutions society employs to regulate individual behavior, maintaining order and conformity.

Mobilization

The process of assembling and organizing resources or people for action or deployment.