The tax benefits of custodial accounts mean that:

a. earnings greater than $2,200 are protected.

b. the tax rate on the investment earnings could be as low as 0%.

c. all earnings on investments in custodial accounts are taxed at the custodians tax rate.

d. earnings on investments in custodial accounts are tax-free.

Tip has annual expenses of $45,000. Calculate how much Tip should hold in his emergency fund.

Tip's emergency fund should hold

earnings on investments in custodial accounts are tax-free.