Which statement about educational funding is NOT correct?

The statement that indicates the owner shares control of the Qualified Tuition Program (QTP) account with the beneficiary is not correct because, in a QTP, the owner typically maintains control over the account. This means that the owner can make decisions about contributions and withdrawals, and they have the authority to determine how the funds are used, usually for qualified education expenses. The beneficiary, while designated to benefit from the account, does not share in the decision-making processes regarding the account.

Each of the other statements accurately reflects aspects of educational funding. For instance, QTPs do enable participation in prepaid tuition plans, which allow individuals to prepay tuition at current rates, securing a fixed price for future education costs. Additionally, savings plans under QTPs allow for cash contributions that can grow tax-deferred until withdrawn for eligible educational expenses, aligning with the tax advantages designed for these educational funding tools. Understanding the control dynamics of QTP accounts is crucial for properly managing these educational funding strategies.