Earnings from Internal Revenue Code Section 529 Plans and Coverdell

question 32

True/False

Earnings from Internal Revenue Code Section 529 plans and Coverdell education savings accounts are excluded from gross income as long as the earnings are used to pay for qualifying educational expenditures.

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Definitions:

Nonrival

A characteristic of a good where one person's consumption does not reduce availability for others.

Inefficiently Low

A situation in which the production or use of goods and services is below the level that could maximize welfare or efficiency.

Nonrival

A characteristic of a good or service where one person's consumption does not reduce its availability for others, often used in the context of public goods.

Efficient Price

A price level where the quantity supplied equals the quantity demanded, leading to an optimal allocation of resources.