What is NOT true of a 529 college savings plan?

1)	Some state plans allow pre-state tax money for their states plan.

2)	The beneficiary must be a child of the taxpayer.

3)	Some states impose contribution limits based on the most expensive university in that state.

4)	No income phase outs.

Sally's family has an expected financial contribution (EFC) of $10,000. She owns a Trust with a $5000 balance and she work part time making $12,000 per year. She wants to attend a private school that costs $40,000 a year. Calculate her financial need?

1)

$30,000

2)

$13,000

3)

$23,000

4)

$40,000