SIE practice questionmedium529 Plans
Which is NOT a feature of 529 college savings plans?
- APenalty-free withdrawal for qualified education expenses
- BFederal income tax deductions for contributions✓ Correct answer
- CState tax benefits may apply
- DHigh contribution limits
Explanation
Why B — Federal income tax deductions for contributions
B is correct; contributions to 529 plans are not deductible from federal income taxes. A, C, and D are all true features of 529 plans.
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