Which of the following statement is not correct about college savings plan? Question 10 options: Under 529 college savings plan, earnings grow tax deferred and are tax free if used for qualified education expenses. 529 college savings plan has no income phase-out. 529 prepaid tuition plan covers only tuition and mandatory fees for post-secondary education with few exceptions. Coverdell educational savings account annual contribution limit is $2,000 per beneficiary per candidate. There is no income limit to open up a Coverdell educational savings account.