Posted on 08/25/2011 6:22:30 AM PDT by LurkedLongEnough
A new report suggests Nevada put budget woes ahead of savers' interests. Could other states follow?
Recent controversy over one state's use of the funds in its college savings plans has raised new concerns for parents and students across the country with money in 529 plans.
In a game of fiscal hot potato, the Nevada legislature moved money from a state scholarship fund into the state's general fund last year; the state later took $4.2 million worth of fees from its 529 plans to cover the gap in the scholarship fund, according to a recent report from the Nevada Policy Research Institute, a conservative think tank. The plans' overseers had had other intentions -- traditionally, those monies have been used to support the plans -- and critics now say the result could be higher fees and a weaker prepaid tuition plan.
(Excerpt) Read more at smartmoney.com ...
Is this legal?
"Experts" (quoted later in the article) say yes, it is. At least in NV. Clever eh. But not moral in my book.
Yeah...thats my question...How is this possibly legal?
I’d be pulling my money out of those pronto.
Another good idea ruined by the insatiable black hole of goobermint.
I wonder if the Nevada Prepaid Tuition programs are licensed by the Nevada Gaming Commission...
Another government theft item to add to the section on How Governments Cheat in Adam Smith’s book: “Wealth of Nations.”
Coming soon ...
Absent a regime change, the same things will happen to Roths and 401ks.
Didn’t you see “Dumb and Dumber”?
Nicholas Andre (taxpayers who invested money in their 529): Where’s all the money?
Lloyd (Harry Reid and other Nevada Democrats): That’s as good as money sir, those are IOUs. Go ahead and add it up, every cents accounted for. Look, see this, that’s a car, 275 thou. Might want to hang on to that one.
That scene epitomizes our government in a nutshell.
pension and retirement plans held by we the people is the last basket full of cash out there and they are coming for it, just read obamacare, it is in there. not to mention they have repeatedly brought forth legislation to do seize all retirement accounts and replace them with treasury bonds, so they can spend the money now. Hold on tight, they are just getting warmed up, the real fire will begin in about 6-8 months as the election nears.
I'll gladly pay you Tuesday for some theft from your savings plan today.
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.