During the current year, U made a $36,000 contribution to a 529 plan to help cover the cost of an undergraduate degree for D, her 15-year-old daughter. Assume three years later D elects to join the work force when she graduates from high school (rather than attend college) and the entire $45,000 accumulated in the 529 plan is distributed to U. How much is included in U's gross income?

Answer rating: 100% (QA)

Since the distributions from the 529 plan were not used for qualified higher education expe... View the full answer