Which of the Following Statements Regarding a Coverdell Education Savings

question 94

Multiple Choice

Which of the following statements regarding a Coverdell Education Savings Account (CESA) is correct?

• A)Distributions used to pay qualified higher education expenses of the beneficiary are tax-free.
• B)A person can contribute to a CESA only if the beneficiary is related by blood or marriage.
• C)Taxpayers who file a joint tax return can contribute to a CESA only if their AGI is less than $150,000.
• D)Contributions to a CESA are tax deductible and the distributions are tax-free (if used for their intended purpose).

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