Action 2.12.5 Question 74 of 100. a All of the following are true about 2021 distributions and contributions to Section 525 plans EXCEPT O A deduction of up to $10,000 per taxpayer ($20,000 MFJ) is available on the federal income tax return for contributions. O Distributions may be used to pay the costs of participation in a registered apprenticeship program. Distributions may be used to pay up to $10,000 in qualified student loans. O Nonqualified distributions are subject to a penalty tax of 10% of the amount included in income. Mark for follow up Next Summary Back Save / Return Later