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.

---

Definitions:

Specific Job

A particular employment position defined by a unique set of duties and responsibilities.

Labor Force Discontinuity

Interruptions or gaps in a person's work history, often due to personal reasons, unemployment, or transitions between jobs.

Entrepreneurial Spirit

A mindset characterized by innovation, risk-taking, and the drive to create new businesses or revitalize existing ones.

Career Development

The process of managing one’s work experience, learning, and training throughout life to advance in one’s job or career path.