Posted on 01/23/2015 1:30:30 AM PST by Brad from Tennessee
President Obama is proposing a radical change to the 529 college savings plans held by millions of families, which would require those who use them to rethink their approach to college savings.
As part of his plan to simplify the tax code and help the middle class, one of the 529 plan’s most attractive benefits would be eliminated: Money could no longer be withdrawn tax-free. (The new rules would apply only to new contributions.)
The accounts, many of which are run by the states, allow people to make contributions that grow tax-free. The money can be withdrawn without the paying of capital gains taxes as long as the proceeds are used for education expenses. Many states provide state income tax deductions for contributions as well.
“I was very surprised by the Obama 529 proposal because in many ways it is anti-middle class for families trying to afford college,” said Joe Hurley, founder of the SavingforCollege.com website. “And so much of the emphasis in the Obama administration has been pro-middle class.”
(Excerpt) Read more at nytimes.com ...
The odds of this gimmick ever happening? Less than 10-percent chance. And if they were stupid enough to pass it....they’d come back within five years to reinvent the original way they did it with no taxation.
Hard to figure what someone told him, and how he came to grasp it....but 529 is basically an entirely middle-class tool. No one making mega bucks would do it, and those on marginal incomes would not make enough to ever develop it into something that would help.
Ah, NYT. This is like saying that purse-snatching is an attempt to lighten Granny's load.
“And so much of the emphasis in the Obama administration has been pro-middle class.”
I’m in pain here... I just snorted hot tea through my nose.
I suppose I could go on and on about this administration supporting the ‘middle class’ But why bother, all a reasonable person has to do is open their eyes and look around their local town or city to see the lie for themselves.
529 Ping
It sounds to me like just another way the left funnels money into their university system. All that money just allows them to increase tuition, waste money and overpay themselves. Just more "targeted tax cuts" that go to the left. Why shouldn't someone be able to get the same break if they help their kids start a business, or a buy a house?
What’s new??? Everything King Putt touches turns to $hit.
A caller on Hannity’s show, yesterday, said she’s researched 0bola’s 529 proposal and that (as usual) the savers - you know, the ones who work and save for their kids’ college - will be penalized (taxed) for withdrawing these savings....and hit with a capital gains tax.
So much for being responsible and actually saving for your kids’ college. We can’t be having any of that in 0bolaland. Everyone must suffer equally...except those who qualify for minority loans, etc.
this was part of a wishlist for the 2016. They’ll poll these topics and see what hillary has to promise to get out the vote.
“529s” were a good idea, with real benefits for parents. But 0 can’t have it that way. It’s “UNFAIR” for those rich White folk to get the benefit while all those poor ‘oppressed’ folk don’t.
So he wants to take money that people have earned and saved honestly and give it to lazy listless slobs who can’t speak English properly.
That man is a disaster for this country.
100%. After all, he rules by decree now.
Talk is cheap. Free college for all, not so much.
If that surprises you, you aren't paying attention.
-——.but 529 is basically an entirely middle-class tool-——
There you have it. It is therefore not fair since it does not assist the urban community too poor to participate
This is exactly why I hate putting savings into accounts that have strings attached. It is only a matter of time until some greedy politician adds up the money in all these accounts.
I find it laughable that this is an effort to simplify the tax code. They go on to detail tax credits with all sorts of rules. What is simpler that having non taxable income declared on a tax form?
Is this 529 proposal a trial balloon for 401K’s? IRA’s? Roth’s?
I used a 529 for both my kids, Got audited EVERY year a used money from the accounts.
By whom? State or Feds?
How does adding another tax simplify the tax code?
Socialism vs. Racism
A young black kid asks his mother, “Mama, what is Socialism and what is Racism?”
“Well, Child ... Socialism is when white folks work every day so we can get all our stuff free like free cell phones for each family member, rent subsidy, food stamps, EBT, WIC, free school lunch, free healthcare, utility subsidy, and on and on, ... you know. That’s Socialism “.
“But mama, don’t the white people get upset about that?
“Sure they do honey and that’s called Racism.”
….(Never more simply explained)..
h/t Glen
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