Coverdell ESAs Combine the Following Features

question 14

Multiple Choice

Coverdell ESAs combine the following features:
I. Contribution is allowed up to $2,000 per year
II. Investments are tax-deferred, but withdrawals are taxable
III. They adversely affect financial aid application
IV. Contributions are controlled by parents
The correct answer is:

• A) I, II, and III
• B) II, III, and IV
• C) I, III, and IV
• D) I, II, and IV