In 2014, Joyce receives a $4,000 distribution from her Coverdell Education Savings Account (CESA), which has a

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In 2014, Joyce receives a $4,000 distribution from her Coverdell Education Savings Account (CESA), which has a fair market value of $10,000. Total contributions to her CESA have been $7,000. Joyce's AGI is $25,000.
a. Joyce uses the entire $4,000 to pay for qualified education expenses. What amount should she include in her gross income?
b. Assume instead that Joyce uses only $2,500 of the $4,000 distribution for qualified education expenses. What amount should she include in her gross income?
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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