What are the basic tax advantages of 529 college savings plans and key withdrawal rules?

What are the basic tax advantages of 529 college savings plans and key withdrawal rules?

• A. 529 plans grow tax-deferred and withdrawals used for qualified education expenses are tax-free at the federal level; some states offer tax deductions or credits.
• B. 529 plans grow tax-free on earnings but contributions are not tax-deductible.
• C. 529 plans grow tax-deferred and withdrawals used for qualified education expenses are tax-free at the federal level; ownership determines control; some states offer deductions or credits.
• D. 529 plans are only available to families with low income.

Answer: (C)