A major tax benefit of a Qualified Tuition Program (529 plan) when used for eligible educational expenses is that:

Question

BrainForge Quiz · Accepted Answer

B) Withdrawals for qualified education expenses are federal tax-free.. The primary federal tax benefit of a 529 plan is that earnings grow tax-deferred, and withdrawals used for qualified education expenses (tuition, fees, room, board, books) are entirely federal tax-free.

A major tax benefit of a Qualified Tuition Program (529 plan) when used for eligible educational expenses is that:

✓ Correct Answer: Option B

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