Simon Garfield has come to you with several questions related to creating an education plan for his daughter Whitney. Simon summarized his current situation as follows:

Simon, who is single, has an AGI of approximately $265,000.

Because of scholarships and grants, Simon anticipates that Whitney will need $35,000 in college funding.

Whitney has several thousand dollars worth of EE Savings bonds held in her name.

Whitney has a brokerage account valued at $9,000 held as an UGMA.

Whitneys grandfather has been saving into a 529 plan for Whitney. The account has a value of $49,000. The value of contributions is $45,000.

Simon is willing to use one of his 401(k) plans, with a balance of $18,000, to help fund any excess college tuition expenses Whitney may incur.

Use this information to answer the following questions:

a.How much of Whitneys EE Savings bonds may she distribute tax free to help offset her college expenses?

b.What type of educational expenses may the 529 plan assets be used to cover?

c.What options does Whitneys grandfather have in relation to the 529 plan if, in fact, Whitneys college expenses are $35,000 and Whitney relies entirely on the 529 plan account balance?

d.If Simon needs to use his 401(k) assets to help fund college expenses for Whitney, how much may be borrowed from the account under current tax law?

e.What, if any, education tax credits may Simon claim on his federal tax return in relation to Whitneys college expenses?

f.Which of the assets listed will have the largest negative impact on the familys expected contribution calculation?