Replies

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.

2 posted on 12/22/2017 6:03:00 AM PST by Nateman (The louder the left screams , the better it is for America!)

3 posted on 12/22/2017 6:04:47 AM PST by Revolutionary ("Praise the Lord and Pass the Ammunition!")

We have a 529 for each of our children. And no we aren’t 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 don’t own anybody a damn apology for that.

After all, it’s 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.

This begs the question, "wealthier than whom?"

Without question, families with 529 or Coverdell accounts tend to be at least middle class, with median incomes of $142,400, compared with a median income of $45,100 for other families, according to the GAO. These account holders also have more money saved for retirement, on average, and more assets in general.

These families are not exactly Rockefellers, however. The College Savings Foundation, in a statement opposing the president's plan, pointed out that Strategic Insight, a mutual fund research organization, calculates that close to 10 percent of 529 accounts are held by households with incomes under $50,000, and 70 percent of the accounts belong to households with less than $150,000 in income. Nearly 95 percent of the households have incomes under $250,000.

6 posted on 12/22/2017 6:14:34 AM PST by af_vet_1981 (The bus came by and I got on, That's when it all began.)

Did anybody happen to define “middle class” this time around?

7 posted on 12/22/2017 6:19:50 AM PST by gov_bean_ counter (Free Republic has been reduced to a gathering place for the inane, banal, and obtuse.)

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.

9 posted on 12/22/2017 6:45:18 AM PST by KarlInOhio (The Whig Party died when it fled the great fight of its century. Ditto for the Republicans now.)

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.