Question: Bob Johnson established a Section 529 Savings Plan for his son Adam several years ago. It is now time to pay Adam's first-year college costs.

Bob Johnson established a Section 529 Savings Plan for his son Adam several years ago. It is now time to pay Adam's first-year college costs. The current value of the fund is $80,000. If Bob withdraws $20,000 to pay qualified tuition expenses, how will the distribution be taxed? To Bob To Adam Only the earnings will be taxed, to Bob There will be no federal taxes

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