Obama proposes taxing college 529 plan withdrawals

[devil21]

If this takes effect, there's who will foot the bill for the 'free' community college. The kids of parents that saved for college will pay for the kids of those who did not.

http://finance.yahoo.com/news/obama-proposes-scaling-back-benefits-044700126.html

You can put away $14,000 each year for a child, pay no tax on the money while it's growing, and no tax when you withdraw it to pay for education costs.

President Obama is proposing to roll back the second part of that equation.

Savings would still grow tax-deferred, but withdrawals would be taxed as income to the beneficiary, typically the child in school.

moreifclick

 

[Kotin]

LOL what a douchebag.. "Free" community college paired with taxes on this?? Hilarious.. Sort of in the spirit of taxing social security benefits.. Just proves this government is completely ridiculous

 

[aGameOfThrones]

If You like your 529 plan, you can keep your 529 plan...

 

[Origanalist]

Is there anything he hasn't proposed taxing?

 

[limequat]

Why would anybody start a 529 in this case?

 

[Bryan]

Is there anything he hasn't proposed taxing?

Forum posts. Not yet at least...

 

[Origanalist]

Forum posts. Not yet at least...

Well, that would be one (big) way to stamp out dissent.

 

[Spikender]

They are becoming cartoonishly Sheriff of Nottingham-esque with their money-grubbing.

 

[devil21]

apparently scratched

http://www.nytimes.com/2015/01/28/u...al-to-end-529-college-savings-plans.html?_r=0