Question: Which statement about qualified tuition programs (529 plans) is TRUE? * Taxpayers may contribute on behalf of a nondependent. Contributions are limited to $2,000 per

Which statement about qualified tuition programs (529 plans) is TRUE?

*

Taxpayers may contribute on behalf of a nondependent.
Contributions are limited to $2,000 per student per year.
Contributions are deductible for federal income tax purposes.
Earnings grow tax-deferred but are always taxed at distribution.

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