Question

Which sentence best describes an incentive for saving for education with a 529 plan?

A.
The income generated by a 529 plan is tax exempt.
B.
Colleges offer a reduced price for tuition paid for with funds from a 529 plan.
C.
There is no penalty if withdrawals are made for non-education-related expenses.
D.
The income generated by a 529 plan is tax deferred.

Answer 1

A The income generated by a 529 plan is tax exempt.

Explanation:

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Answer 2

A. The income generated by a 529 plan is tax exempt