Buried in Obama's proposed "tax cut for the middle class" is a proposed tax on 529 college savings plans. You know, those plans that make college/trade schools more affordable for the middle class? Yet, because they are investment savings plans, the Obama admin thinks that the stupid middle class won't even bat an eyelash at the hidden tax.
The 1% probably rarely utilizes these plans as an investment vehicle, yet here is Obama wanting to tax them. Why even have a 529 in your child's name then? Just invest the money as you normally would... It is going to get taxed anyway.
I guess community college is good enough for U.S. children according to Obama.
Yes, I'm ranting. I did everything right. When my daughter turned 1, I started depositing money in a 529 plan with a good history of return. Every month a small amount is debited out of my bank account and transferred there. It is for her to use tax free for education expenses. It will help us save for retirement while still insuring that we have done something for her college education (should she choose college). What she will have at 18 years old is up for debate, but it won't be a ton of money, we'll probably still have to help her, and she'll probably still have to work part time and perhaps take on college loans pending her choice of schooling.
I'm not the 1%. Thanks Obama! Or should I say... FUCK YOU.
http://www.forbes.com/sites/ryanell...ax-hike-on-middle-class-529-college-savers/2/
"After the tax law change (which was made permanent in 2006), amounts withdrawn to pay for college were totally tax free. 529 plans thus became a kind of Roth IRA for college savingsyou didnt get any up front tax break (except maybe on your state income tax), but you could rest assured that your college nest eggs growth would face no taxation when it came time to make tuition payments."
"The Obama plan aims to turn back the clock, once again taxing earnings growth in 529 plans as ordinary income. This is a direct and clear tax increase on middle class families sacrificing to save for college, and its likely to result in a mass divestment from this type of savings."
The 1% probably rarely utilizes these plans as an investment vehicle, yet here is Obama wanting to tax them. Why even have a 529 in your child's name then? Just invest the money as you normally would... It is going to get taxed anyway.
I guess community college is good enough for U.S. children according to Obama.
Yes, I'm ranting. I did everything right. When my daughter turned 1, I started depositing money in a 529 plan with a good history of return. Every month a small amount is debited out of my bank account and transferred there. It is for her to use tax free for education expenses. It will help us save for retirement while still insuring that we have done something for her college education (should she choose college). What she will have at 18 years old is up for debate, but it won't be a ton of money, we'll probably still have to help her, and she'll probably still have to work part time and perhaps take on college loans pending her choice of schooling.
I'm not the 1%. Thanks Obama! Or should I say... FUCK YOU.
http://www.forbes.com/sites/ryanell...ax-hike-on-middle-class-529-college-savers/2/
"After the tax law change (which was made permanent in 2006), amounts withdrawn to pay for college were totally tax free. 529 plans thus became a kind of Roth IRA for college savingsyou didnt get any up front tax break (except maybe on your state income tax), but you could rest assured that your college nest eggs growth would face no taxation when it came time to make tuition payments."
"The Obama plan aims to turn back the clock, once again taxing earnings growth in 529 plans as ordinary income. This is a direct and clear tax increase on middle class families sacrificing to save for college, and its likely to result in a mass divestment from this type of savings."