Apex Learning 4.3.2 Quiz Review CCR

All of the following should be considered before enrolling in a 529 plan

The money not spent on college expenses will be taxed, Having a 529 plan can affect your need-based financial aid eligibility, Typically, the beneficiary should be 15 years old or younger to benefit from the plan.

How many times per year can a 529 plan account holder move funds from one plan to another?

1

What is a tax-advantaged savings plan designed to encourage savings for future college costs?

529 plan

A plan that allows a family to pre-purchase one part of a college's cost of attendance is called a _____.

529 prepaid tuition plan

For which plan or plans is knowing the withdrawal restrictions important?

Both 529 plans as well as the Coverdell Education Savings Account

Which of the following is true of the 529 plan?

It does not guarantee admission to college.

What is a characteristic of the college savings plan?

It is administered only by states.

What makes the Coverdell Education Savings Account unique?

It offers many investment choices.

All of the following are characteristics of the prepaid tuition plan

It's not available in every state, There are state residency restrictions, It has a limited enrollment period.

What is a benefit of enrolling in a prepaid tuition plan?

Locking in current tuition rates for future college education

What is a benefit of a 529 plan?

Many plans have a low monthly contribution requirement.

What is a difference between a prepaid tuition plan and a college savings plan?

One covers all college expenses, while the other covers only tuition.

What is a characteristic of the Coverdell Education Savings Account?

There is a maximum yearly contribution limit.

Which of the following is a characteristic of the 529 plan that makes it different from the Coverdell Education Savings Account?

There is no age limit for disbursement of funds.

All of the following are important questions to ask before enrolling in a college savings plan

What fees are charged by the plan? Can a beneficiary have more than one savings account? What are the qualified education expenses?

To whom do you go if you wish to enroll in a college savings plan?

a broker

To whom should your family talk about enrolling in a 529 plan or a Coverdell Education Savings Account?

a financial adviser

A plan that locks in tuition prices at eligible colleges and universities is known as a _____.

a prepaid tuition plan

Another term for a 529 plan is a _____.

a qualified tuition plan.

To whom do you go if you wish to enroll in a prepaid plan?

a state agent

Where can you open a Coverdell Education Savings Account?

any financial institution

A plan that covers all qualified higher education expenses is known as the _____.

college savings plan.

Money invested in a Coverdell Education Savings Account can be used for:

elementary, secondary, and post-secondary education expenses.

A 529 prepaid tuition plan and a 529 college savings plan can be applied to all of the following

four-year colleges and universities, community colleges, certain foreign institutions.

Funds that are left over in a 529 account after all college expenses have been paid go back to whom?

the account holder

Who maintains control over the 529 plan?

the account holder

Funds left over from a Coverdell Education Savings Account after all education expenses are paid go back to whom?

the beneficiary

529 plans are sponsored by

the federal government

The amount of money you make on the college savings plan investment is dependent on:

the market performance of the investment.

The prepaid tuition plan covers:

tuition and fees