http://www.forbes.com/sites/ryanellis/2 ... -savers/2/
Comments? Time to switch back to taxable?The Obama plan aims to turn back the clock, once again taxing earnings growth in 529 plans as ordinary income.
Cosmo
Comments? Time to switch back to taxable?The Obama plan aims to turn back the clock, once again taxing earnings growth in 529 plans as ordinary income.
Love getting a comment in before threads get locked. I agree with the above. Funny how he thinks the middle class will like having a college savings account benefit ripped away from them. I thought he wanted middle class on his side. The rich have more then enough money to send their kids to any college they want despite any changes in taxation. You figure it is the middle class to be hurt by changing this tax code.livesoft wrote:Since the thread will get locked anyways, I will voice my opinion that Obama is just laying the groundwork to make the other party take a stand against raising taxes for the wealthy and make themselves look bad. Will any of these ideas get into legislation? That would be very hard to believe considering who controls committees in Congress nowadays, so it is probably not even worth worrying about much less discussing.
i believe it's been mentioned on several recent threads that 529 plans are optimized for the upper class, since middle class families may get more bang for their buck maximizing their 401k/Roth plans (and few of them have the funds to get past that point.)staythecourse wrote: Love getting a comment in before threads get locked. I agree with the above. Funny how he thinks the middle class will like having a college savings account benefit ripped away from them.
That will not work simply because the educational lobbyists will be out in force to protect their non-taxed revenue stream. Can you imagine all the laid off administrators protesting in DC? What are you the administrator of? Response: I had a cool job overseeing the shuffling of the grounds crew who struggled to keep up against crabgrass and making the begonias outside the presidents office look pretty for unsuspecting prospective sheep and their parents. Also, the investment management industry will be lobbying hard against this as well, after all who's going to pay for their Grey Poupon? Of course if it does come to pass, I'll be able to retire since I won't need to shell out the projected $400K for a 4 year undergrad degree at the local state run university.livesoft wrote:As already discussed, the middle class should not be using 529 plans since they are not wealthy enough to contribute the max to their retirement plans first. Indeed, doing away with 529 plans would probably be beneficial to the middle class because college costs would drop and their retirement plans would get more funds.
No, he's going to tax your offspring's inheritance instead - called spreading the wealth around.southerndoc wrote:Ugh. Just contributed $2,000 to my daughter's 529.
What's next? Taxing Roths?
It's huge - just ask the ICI in DC.Bracket wrote:My question is what do the big 529 firms think about this? How big is the 529 industry? Don't these people have lobbyists?
(Yes I like my 529 and wish they would just leave it alone thank you very much. Stop changing the rules.)
Interesting take, Livesoft. Thanks. Probably doesn't help me, though. Even though I don't consider myself upper class.livesoft wrote:As already discussed, the middle class should not be using 529 plans since they are not wealthy enough to contribute the max to their retirement plans first. Indeed, doing away with 529 plans would probably be beneficial to the middle class because college costs would drop and their retirement plans would get more funds.
Don't you know, it's not what you think, it's what THEY think that matters. Anyone who's breathing and earns income is a fruit tree just waiting to be harvested.Cosmo wrote:Interesting take, Livesoft. Thanks. Probably doesn't help me, though. Even though I don't consider myself upper class.livesoft wrote:As already discussed, the middle class should not be using 529 plans since they are not wealthy enough to contribute the max to their retirement plans first. Indeed, doing away with 529 plans would probably be beneficial to the middle class because college costs would drop and their retirement plans would get more funds.
Cosmo
Grt2bOutdoors wrote: Don't you know, it's not what you think, it's what THEY think that matters. Anyone who's breathing and earns income is a fruit tree just waiting to be harvested.
are you taking advantage of being in before the lock to say as many incendiary things as possible?Grt2bOutdoors wrote:No, he's going to tax your offspring's inheritance instead - called spreading the wealth around.
Not intended to be inflammatory or incendiary, merely confirming my opinion that even though I am not wealthy by any means I am considered to be a source of funds for one to tap for reasons that I am not in agreement with. Therefore what I think doesn't matter. It's entirely personal and actionable by me - I will now refrain from contributing any further to plans that were specially designed specific purpose vehicles as it appear the rules can be changed at any time.ERMD wrote:Grt2bOutdoors wrote: Don't you know, it's not what you think, it's what THEY think that matters. Anyone who's breathing and earns income is a fruit tree just waiting to be harvested.are you taking advantage of being in before the lock to say as many incendiary things as possible?Grt2bOutdoors wrote:No, he's going to tax your offspring's inheritance instead - called spreading the wealth around.
Funding a Roth was probably always the better option even with state income tax breaks unless kids were very close to attending college.leonidas wrote:Maybe it is time to think about using ROTH's for education expenses.
This is a popular topic of discussion today, there's one other thread I've locked (at least) and another which I've removed. The policy is in place to keep the discussions civil and the moderators sane. See: Re: What happened to all of the gold bugs? for an example.UNACCEPTABLE TOPICS
Politics and Religion
In order to avoid the inevitable frictions that arise from these topics, political or religious posts and comments are prohibited. The only exceptions to this rule are:
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