Posted on 12/22/2017 5:59:44 AM PST by GonzoII
So it actually happened.
Just last month, it was not certain that the Senate would go along with the House of Representatives proposal to let families use 529 college savings plans to pay for private school from elementary school onward. In a bill that offered many perks for the wealthy, the 529 provision was a particularly brazen giveaway.
After all, its mostly wealthier people who can save enough to reap large benefits from the provision, which allows $10,000 in annual tax-free 529 account withdrawals for pre-college students starting in 2018.
But it really did happen, and President Trump will soon sign the bill that makes it the law of the land.
The short-term opportunities for affluent families are potentially worth five figures. The schools, however, will now confront a major financial aid question that the new bill forces on them. And states could make offsetting tax changes that cost 529 savers money. Any eventual populist blowback could threaten the plans, too.
But lets start with the good news, for those who have the money and the inclination. With 529 plans, you put money in, let it grow for years in mutual funds and then pull it out to use for higher education expenses. When you do, you dont pay capital gains taxes on what youve earned over time.
(Excerpt) Read more at nytimes.com ...
This might be fake news. I know the RATS made them strip out someything like this because it required 60 votes to get it.That’s why it had to go back to House with this striped out.
The home schooling portion of this was stripped.
We have a 529 for each of our children. And no we arent rich. I am so sick to death of the class warfare in this country. My husband works very hard for what we have and I dont own anybody a damn apology for that.
Did anybody happen to define middle class this time around?
No, you owe nobody an apology. I am also sick of the left’s class warfare strategy.
Only the gain is tax free. So if you start spending the money on private kindergarten you forgo more than a decade of growth. If anything this might increase taxes because of less untaxed money being spent on college.
I was hoping for a line from the actual bill that confirms this claim. Alas, this is the NYT and no such basic level of reporting applies. I called a mutual fund company I deal with and so far they are unaware of any changes to 529 plans in the new bill.
So much the democrats can be hung on in 2018. This provision being one.
Bingo. Same here. We saved that money. Our choice. And school choice too. No apologies here.
It should be encouraged and not used as a political weapon from the media to feed the have-nots. We pay for their schooling too.
So in effect, we pay twice. So why not let our savings grow and be used for education purposes for our kids? Not just the uber-rich benefit from this. As bad as government run schools have become . . .
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