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Which of the following describes a difference between a Section 5 2 9 plan and an Educational Savings Account? a . An Educational Savings Account
Which of the following describes a difference between a Section plan and an Educational Savings Account?
a An Educational Savings Account income exclusion for distributions may be available in the same year as an education credit is claimed, but not if distributions from a Section plan are also taken.
b Distributions from Section plans are nontaxable if used for qualified education expenses. The Educational Savings Account distribution is taxable on the earnings portion of the distribution even if used for qualified education expenses.
c The contributions to a Section plan are not deductible, but contributions to an Educational Savings Account are deductible.
d The maximum annual contribution to an Educational Savings Account is $ which is phased out for highincome individuals. The contributions to a Section plan may be larger than $ and are not phased out for highincome individuals.
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