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IRS provisions: Qualified Tuition Program

I need some help on summarizing key provisions on IRS:
Go to the IRS website and download the instructions and regulations relative to educational savings bonds and qualified tuition programs. In outline format, summarize one of the key provisions in these materials. Support your responses with examples.

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Step 1
One of the key provisions in these materials is Section 529, qualified tuition plans. Under Section 529(a), Qualified Tuition Program, the general rule is that a qualified tuition program shall be exempt from taxation. The qualified tuition program means a program that has been maintained by a state or agency or instrumentality or by 1 or more eligible educational institutions (Cch Tax Law 2008). The person investing in tuition plans may purchase tuition credits or certificates on behalf of a designated beneficiary. Otherwise a person may make contributions to an account which has been set up for meeting the qualified higher education expenses of the beneficiary account. The program must accept cash contributions. For example, a program that agrees to accept property as contribution is not a qualified program under Section 529. For a program to be treated as qualified program it must provide separate accounting for each designated beneficiary, the contributor/beneficiary must not direct the investment of contributions, the interest in the program cannot be used as a security for a loan, and the program should not accept contributions in excess of what is required to provide for qualified educational cost. For example, if a program allows the contributor to influence how the funds will be invested that ...

Solution Summary

This solution gives you a step-by-step explanation of one provision of educational savings bonds and qualified tuition programs. The response also contains the sources used.