If a 529 plan's funds are used for non-qualified expenses, the account owner may be subject to:

1. ADouble state taxation
2. BNo tax or penalties
3. C100% forfeiture of principal
4. DOrdinary income tax on gains and a 10% penalty on earnings✓ Correct answer

Reading one answer is not the same as being ready

Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.

• Which of the following is true of an equity REIT?
• A key risk associated with variable annuities, but not with fixed annuities, is:
• Why are hedge funds subject to less disclosure and fewer regulations than mutual funds?
• Which factor most limits significant price deviations between an ETF's market price and its net asset value?