Free College for losers will be PAID for by RESPONSIBLE people who saved for College
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Busybody
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4. Tax Increase on Families Saving for College
Under current law, 529 plans work like Roth IRAs: you put money in, and the money grows tax-free for college. Distributions are tax-free provided they are to pay for college.
Under the Obama plan, earnings growth in a 529 plan would no longer be tax-free. Instead, earnings would face taxation upon withdrawal, even if the withdrawal is to pay for college. This was the law prior to 2001.
Read more: http://www.atr.org/obama-calls-320-billion-new-taxes#ixzz3PDZPznuL
Follow us: @taxreformer on Twitter
Under current law, 529 plans work like Roth IRAs: you put money in, and the money grows tax-free for college. Distributions are tax-free provided they are to pay for college.
Under the Obama plan, earnings growth in a 529 plan would no longer be tax-free. Instead, earnings would face taxation upon withdrawal, even if the withdrawal is to pay for college. This was the law prior to 2001.
Read more: http://www.atr.org/obama-calls-320-billion-new-taxes#ixzz3PDZPznuL
Follow us: @taxreformer on Twitter
Boxlicker101
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Maybe it is; maybe it isn't. If parents started putting money into a college fund before 2001, it probably would be part of their incomes. If that money is also taxed when it is withdrawn to pay college expenses, that would be double taxation. Or, if the money were inherited from a grandparent, it would not be taxable now. If a portion were put away into a college fund, would that money be taxable when withdrawn to pay college expenses?
phrodeau
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Only the gain would get taxed. What sort of financial whiz are you?Maybe it is; maybe it isn't. If parents started putting money into a college fund before 2001, it probably would be part of their incomes. If that money is also taxed when it is withdrawn to pay college expenses, that would be double taxation. Or, if the money were inherited from a grandparent, it would not be taxable now. If a portion were put away into a college fund, would that money be taxable when withdrawn to pay college expenses?
NeverEndingMe
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there your kind goes ... wanting more stuff for free and never willing to put the work in.
this is why welfare needs to become illegal as you give people shit for free and they treat it like shit. this is why projects / low income apts always look like shit. welfare turns people into animals
rippitydoo
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They treat it like the thing it is? Then what should people treat you as, because I know "another person" is the wrong answer.
Boxlicker101
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There's something I'm puzzled about here. I have never had much use for an IRA because my wife and I have good retirement plans where we work and I have never bothered to learn about IRA's. However, I have always had the impression that the holder of the IRA puts away a preset amount, and this is exempt income, and draws it out upon retirement, paying tax on this distribution at that time. Are you telling me the distributions from and the payments to a Plan 529 are all exempt?
I get that the interest accumulated is exempt, but what about the principal? If everything is exempt, this is a fabulous way to save money, but I have a hard time believing that would be the case.
Busybody
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Busybody
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opps
DO TELL: Obama drops proposal to cut tax benefits of 529 college savings plans.
so he DROPPED something that he NEVER proposed?
GOT IT
phrodeau
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Bush made it so. Congress will make sure it stays that way.There's something I'm puzzled about here. I have never had much use for an IRA because my wife and I have good retirement plans where we work and I have never bothered to learn about IRA's. However, I have always had the impression that the holder of the IRA puts away a preset amount, and this is exempt income, and draws it out upon retirement, paying tax on this distribution at that time. Are you telling me the distributions from and the payments to a Plan 529 are all exempt?
If everything is exempt, this is a fabulous way to save money, but I have a hard time believing that would be the case.
Busybody
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NiggerObola backtracks on shit NIGGER FREAK DOH called a LIE
Obama’s Position on 529 Plans Is Even Worse than It Originally Seemed
Hey, remember when President Obama proposed ending the tax-free status of 529 college-savings plans?
This is one of those allegedly unfair loopholes in our tax system that he’s completely fine with utilizing for his own family. Back in 2007, he and Michelle put a huge amount of money in a 529 plan for their daughters:
According to their 2008 tax returns, the Obamas took advantage of a unique feature of 529 plans that allows account owners to front-load five years’ worth of contributions, $240,000 in total for the two girls. They did so without triggering gift taxes -- now levied on any gift exceeding $13,000 a year. Form 709, the federal gift-tax form, shows that Barack and Michelle Obama made equal contributions of $120,000 each, or $60,000 to each of the two children in 2007.
The claim that the tax-free status of 529 plans represents some sort of giveaway to the rich turns out to be typically inaccurate administration propaganda:
As of March 2014, close to ten percent of 529 accounts are owned by households with income below $50,000, over 70 percent are owned by households with income below $150,000, and almost 95 percent of 529 accounts are in households with income below$250,000.
The good news -- if temporary -- is that Obama is dropping the proposal:
President Obama, facing angry reprisals from parents and from lawmakers of both parties, will drop his proposal to effectively end popular college savings accounts known as 529s, but will keep an expanded tuition tax credit at the center of his college access plan, the White House said Tuesday.
The decision came just hours after House Speaker John A. Boehner of Ohio demanded the proposal be withdrawn from the president’s budget, due out Monday, “for the sake of middle-class families.” But the call for the White House to relent also came from top Democrats, including Representatives Nancy Pelosi of California, the minority leader, and Chris Van Hollen of Maryland, the ranking member of the Budget Committee.
Ms. Pelosi pressed the case to senior administration officials on board Air Force One as she flew with the president from India to Saudi Arabia, according to Democratic aides familiar with the discussions.
House Speaker John Boehner does a touchdown dance.
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CandiCame
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That's kind of simplistic. It depends on the kind of IRA, which are taxed in different ways. You are taxed, and you can also be hit with different penalties depending on when and how you draw out your money.
phrodeau
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You said Obama wants to pay for the program by double-taxing 529 plans. He never proposed that, dumbass.opps
DO TELL: Obama drops proposal to cut tax benefits of 529 college savings plans.
so he DROPPED something that he NEVER proposed?
GOT IT
Boxlicker101
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They're also among that legendary 1%.
