questions 16&17

Question completion Status: QUESTION 16 John, who is single and earns $45,000 per year, is considering establishing a 529 plan to help fund his child's college expenses. Which of the following rules should john be aware of when establishing the account? If he uses account distributions for anything other than qualified education expenses the distribution, will be subject to a 10% tax penalty. John may use proceeds in the account without a penalty to fund education expenses, the purchase of a new house, and to pay for medical bills. John will receive a federal tax deduction (i.e, an above-the-line AGI deduction) up to $2,000 per year when he makes a contribution Due to income phaseout restrictions, John may not be able to contribute to a 529 plan. QUESTION 17 Which of the following is an appropriate investment choice for a short-term emergency fund? Money Market Mutual Fund: 18-Month Certificate of Deposit: Treasury Bill: Conservative Stock Fund I and I only I and Ill only Call and III only II, III, and IV only LII, III, and IV QUESTION 18