Answer True or False: 1) Life insurance helps bridge the gap between the financi
ID: 415343 • Letter: A
Question
Answer True or False:
1) Life insurance helps bridge the gap between the financial needs of your dependents and the amount available from other sources, is the amount to be provided by life insurance.
2) Life insurance provides a generally income tax-free lump sum of money for your survivors in the event of your death. The appropriate amount of insurance depends only depends on your age
3) You won't have to pay federal or state income taxes on the money you withdraw from your 529 College Savings Plan if the money is used to pay for qualified higher-education expenses.
4) The Federal Tax Cut and Jobs Act of 2017 that was signed into law on December 22, 2017 enables 529 plan owners to withdraw assets to pay for K-12 tuitions up to $10,000 per year beginning in 2018. These withdrawals will have no federal tax impact. The indivudal will not be taked on the plan earnings if used to fund K-12 education within the laws limits.
Explanation / Answer
Answer:- 1) Life insurance helps bridge the gap between the financial needs of your dependents and the amount available from other sources, is the amount to be provided by life insurance.
Correct Answer:- True
Answer:- 3 You won't have to pay federal or state income taxes on the money you withdraw from your 529 College Savings Plan if the money is used to pay for qualified higher-education expenses.
Correct Answer:- True
Reason:- Whether 529 plan is a college savings plan or a prepaid tuition plan, the money you withdraw must be used for qualified higher education expenses. ... If you use the money for any other purpose, the earnings portion of the distribution will be taxable on your federal (and possibly state) income tax return
Answer:- The Federal Tax Cut and Jobs Act of 2017 that was signed into law on December 22, 2017 enables 529 plan owners to withdraw assets to pay for K-12 tuitions up to $10,000 per year beginning in 2018. These withdrawals will have no federal tax impact. The individual will not be taken on the plan earnings if used to fund K-12 education within the laws limits.
Correct answer:- true
Reason:- The Tax Cuts and Jobs Act (TCJA) signed into law in December 2017 expands the benefits of 529 college savings plans to cover private school tuition. Effective Jan.1, 2018, the law allows families the opportunity to fund 529 accounts and take tax-free withdrawals of up to$10,000 per year to pay.
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