Which of the following is/are true regarding 529 Savings Plans? (A) A federal income tax deduction is not permitted for contributions to a 529 Savings Plan. (B) Qualified distributions from a 529 plan can be used to pay for a computer. (C) All of the above. (D) There are no income limitations (phase-outs) on who can contribute to a 529 Savings Plan.
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This statement is generally true at the federal level. Some states offer state income tax deductions for contributions to 529 plans, but there is no federal deduction. Show more…
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