0
Most SPDA have surrender charges for 7-10 years. Also most allow you to take only 10% of the total amount during the surrender period. Also you would be hit with a 10% tax penalty if under 59 1/2 and it would be taxable income for that year. Using a 529 plan from your state would be a better way to pay for college.
What else can I help you with?
A plan that covers all qualified higher education expenses is known as what?
A plan that covers all qualified higher education expenses is known as a 529 plan. These tax-advantaged savings plans are specifically designed to help families save for future education costs, including tuition, fees, room and board, and other related expenses. Contributions grow tax-free, and withdrawals for qualified expenses are also tax-free, making them an effective option for funding education.
What do you do with the 1099-Q form?
If there were qualified education expenses equal to the distribution you don't do anything. If the expenses exceed the distribution amount the difference can be claimed as an education credit or tuition and fees adjustment. If the distribution exceeded the qualified expenses see Publication 970 to figure the taxable amount.
What is the name for reimbursement accounts for qualified medical and childcare expenses?
What is the name for reimbursement accounts for qualified medical and child care expenses? A. cafeteria plans. B. deferred compensation plans. C. option plans. D. flexible spending accounts. d
Which 529 plan covers all qualified higher education expenses?
collage saving plan
What is a plan that covers all qualified higher education expenses is known as the?
college savings plan
What is Deferred int expenses?
Deferred int expenses is a term used in accounting for business and finance. It is used to refer to the interest on loans and payments, which is considered an expense that is deferred, or expected to be paid at a later date.
What are the requirements for a loan to be considered a qualified education loan?
A qualified education loan must be used to pay for qualified education expenses for a student who is enrolled at least half-time in a degree program. The loan must be from an eligible lender and the borrower must be the student, their spouse, or their dependent.
What federal tax benefits are available for education expenses?
Some federal tax benefits available for education expenses include the American Opportunity Credit, the Lifetime Learning Credit, and the tuition and fees deduction. These benefits can help reduce the amount of taxes owed for qualified education expenses.
What is considered a qualified education expense for the lifetime learning credit?
Qualified education expenses for the lifetime learning credit include tuition, fees, books, supplies, and equipment required for enrollment or attendance at an eligible educational institution.
What are the five categories of adjusting entries?
deferred expenses, deferred revenues, accrued expenses, accrued revenues and estimated expensesAdjustments to the enterprise's accounts can only be made in the time period when the business terminates.
What is the journal entry for deferred revenue?
As it is a advance receipt the journal entry would be cash dr. to deferred revenue
How do scholarships affect 529 withdrawals?
Scholarships can affect 529 withdrawals by reducing the amount of qualified education expenses eligible for tax-free withdrawal. If a student receives a scholarship, the amount of the scholarship must be subtracted from the total qualified education expenses when determining the tax-free withdrawal amount from a 529 plan.
