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Sophia is the custodian of her daughter Dorothy's Section 529 plan. If Sophia withdraws funds from the 529 plan to pay for plane tickets for
Sophia is the custodian of her daughter Dorothy's Section 529 plan. If Sophia withdraws funds from the 529 plan to pay for plane tickets for Sophia and Dorothy to tour colleges, which of the following is most correct regarding the tax treatment? O The withdrawal will be partially taxable earnings and partially tax-free withdrawal of principal, plus a 10% penalty will apply to the taxable portion. The withdrawal amount is fully tax-free. The withdrawal amount is fully taxable. The withdrawal will be partially taxable earnings and partially tax-free withdrawal of principal
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