Question

Wich of the following is true of the 529 plan

A= you can use it only for four year colleges
B= you do not get taxed for money that is used for college expenses
C= it does not guarantess admission to college
D= your chances of being admitted to college are higher if you have the plan

Answer 1

The answer is c!!! Just took the test and got it wrong! Thanks anyways for the attempted help!

Answer 2

The correct answer is option C.

Step-by-step explanation:

A 529 plan it is used exclusively for savings. It will not give you any advantage over your college entrance.

These types of plans provide financial and tax benefits for students who want to invest and save to pay for their future studies.

The two types of plans that exist are:

• College savings plans

• Prepaid tuition plans

They can be used in any type of University even if it is located in another state.

It is widely used to reduce university costs.