Posted on 03/05/2015 8:51:54 AM PST by E. Pluribus Unum
More Americans are saving money for college using 529 accounts.
They amount of money in the savings plans grew to a record $248 billion in 2014, about 9 percent more than the previous year.
People are starting to save for their children earlier than ever. About 31 percent of the savings plans are opened by parents when their child is barely a year old, or before, according to the College Savings Plans Network.
That's smart, given the skyrocketing cost of college tuition and fees in recent years.
"You really should be starting to save for college as soon as your child is born," said Betty Lochner, chair of the College Savings Plans Network.
Still, the savings aren't enough. The average account size doubled in the past six years to reach an all-time high of $20,474.
But that typically covers the cost of just one year at a public school.
In-state tuition, fees, and room and board averages nearly $19,000. Private college costs average more than $42,000 a year, according to The College Board.
Offered by states, 529 college savings plans allow holders to save money and withdraw tax free, as long as the proceeds are used towards approved college costs, like tuition, fees, room and board, and books.
The total number of 529 accounts grew 4 percent to 12 million last year, according to the College Savings Plans Network's new report.
Lochner credits a growing awareness of 529 savings plans for the jump in last year's numbers. She expects the wave to continue.
There's a push in Congress to make the rules governing 529 college savings plans more flexible. A bill that's currently making its way through the House would allow the funds to be used for things like computers and Internet access.
A bill that’s currently making its way through the House would allow the funds to be used for things like computers and Internet access.
ANd by the time it reaches Obama it will have morphed in to a law that confiscates ALL YOUR MONEY and the Government will pay for your education in return.
Anyone who would put money in a 529 at this point is probably too stupid to be allowed to keep their own money anyway.
Piles of money do not sit unattended without a government taking notice...........
“Anyone who would put money in a 529 at this point is probably too stupid to be allowed to keep their own money anyway.”
Elaborate please:
Won’t they be surprised when Obama “nationalizes” those accounts.
The Obama team has already floated a proposal to tax 529s to pay for his ‘free college’ plans. While he has publicly backed off the proposal for now, anyone who thinks that it has been abandoned doesn’t understand how the left works - Two big steps forward, a half step back in the face of opposition, and then when it quiets down, two more big steps forward.
And when it is finally implemented, no one will be able to claim surprise - by that point, it will have ‘been on the table for years and everyone was on notice that it could happen’. So feel free to think that you are socking it away for your kids and grandkids; the sons of Obama should (but probably won’t) thank you you for what you are doing for them.
“...you didn’t earn that!”
“If you like your 529/401k plans, you can keep your...”
Oh, nevermind.
Thanks.
Emir Obozzo and his Sunni Left wing thugs have had their eyes on our IRAs, 401k’s and other retirement plans for a long time. So coveting after 529’s is predictable and not surprising.
Hopefully, my grand kids will have spent their 529 money deposited by hopeful older relatives on both sides.
If they are the right ages, they may have a shot at using the money for its intended purposes. And I agree about the eventual fate of the 401/IRAs. (What they will probably do there, and some countries are doing as a test, is giving folks a choice between keeping and using their 401k/IRA money or keeping and using SS - one or the other, but not both.) But they don’t seem to be as far down that road as they are with the college funds. And I expect them to start with the Roths, so I do avoid those.
You are wrong on that. Hillary (through her close friend Huma)is tied the Sunnie (as are the Bush crowd). Obama appears to have ties to the Shi'ites.
Money in 529s also counts as assets to determine your “need based assistance” for the jacked-up prices.
You might want to consider all the data re Obozo being tied to the Sunnis:
ttps://www.google.com/webhp?sourceid=chrome-instant&rlz=1C1AFAB_enUS489US567&ion=1&espv=2&ie=UTF-8#q=obamas%20ties%20to%20the%20sunnis
“Money in 529s also counts as assets to determine your “need based assistance” for the jacked-up prices.”
None of my younger relatives will ever qualify on a need based assistance like none of my family on both sides.
Or.....if you DON’T like your your 401K or 529;don’t worry about it,Obama will take it anyway. Most of the people I know are doing OK if they can make the monthly payments,let alone any savings.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.