Question

When 529 plan distributions are not used for qualified higher education expenses, these distributions are subject to an additional penalty of:

A. 5%
B. 10%
C. 15%
D. 25%
E. None of these

Answer 1

Distributions from a 529 plan not used for qualified higher education expenses are subject to a 10% penalty

Step-by-step explanation:

The penalty on distributions from a 529 plan that are not used for qualified higher education expenses is 10% (Option B)