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In a 529 plan, how are earnings treated for federal income tax when used for qualified education costs?

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  1. Taxed at 10%
  2. Not subject to federal income tax
  3. Taxed like regular wages

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References

  1. Investor.gov: Introduction to 529 Plans www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins/introduction-529-plans-investor-bulletin Checked 2026-10-10.

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