A Difference Between a Section 529 Plan and an Educational

Multiple Choice

A difference between a Section 529 Plan and an Educational Savings Account is that:

A) The contributions to a Section 529 Plan are not deductible while contributions to an Educational Savings Account are deductible.
B) The maximum contribution to an Educational Savings Account is $2,000 which is phased out for high-income individuals.The contributions to a Section 529 Plan may be larger than $2,000 and are not phased out for high-income individuals.
C) Distributions from Section 529 Plans are non-taxable 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.
D) 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 529 Plan are also taken.