Question 74 of 100. All of the following are true about 2021 distributions and contributions to Section 529 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. 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