4. "Why is that the damn choice?" In response to Reply # 3
It's not an either or and in fact should be a both.
A 4 yr school isn't free. Grad school isn't free. Etc. 529 is a great way to defray that cost they will incur
It's as close to a nobrainer as we have in this country and it frustrates me to no end how we (*rubs back of hand in universal sign for Blackness*) don't take advantage of the shit even when we know how, know it's value etc
In MD the money you put in is tax deductible so it's like dude...c'mon.
10. "so a 529 = ducking taxes to you?? You must not get how it works..." In response to Reply # 7
there's currently no better way to invest in college education long term in the United States. Taking away the one thing that actually works is NOT the move My Guy.
12. "Obama never tried to dead the 529. He tried to make them taxable" In response to Reply # 10
529s generate capital gains or INCOME. He sought to tax that income to subsidize other education programs. 70% of 529's are owned by families earning over 200k/year. They're tax shelters for the affluent.
18. "and THIS is why we never tax the wealthy" In response to Reply # 15
that 30% is clinging on to their lil tax deduction for dear life when in reality they'd fare better with more money put into the pool. The 1% fights tax increases of a few hundred dollars and the 1 percent of the one percent holds onto millions.
20. "more money put into what pool?" In response to Reply # 18
>that 30% is clinging on to their lil tax deduction for dear >life when in reality they'd fare better with more money put >into the pool.
youre saying, middle class parents, dont put money into the 529, just save it yourself...somewhere. or not. or what are you saying other then tax the 529?
22. "Just speaking on Barry's plan" In response to Reply # 20
He was going to use the taxes on the 529s to help fund other education programs, specifically the free community college initiative. The chief benefit of a 529 is that it's an investment savings account (or pre-paid plan, depending on the state), and that would still be available and beneficial to middle-income families. They would just have to pay taxes.
23. "and what people are hollering is we pay HELLA taxes already" In response to Reply # 22
and we need to spend our taxes better
saying hey middle class families who wanna send a kid to school...you were smart to take advantage of this program but you know that whole tax free thing we told you when it started? yeah thats no good now. so please unass 5k of the 20k youve mananged to skimp & save up because...we need it to build more war planes
2. "Opened one the week my son was born" In response to Reply # 0
He also has a share builder account in his name with investments in everything including Apple. By the time college rolls around he'll be more than covered. He's 15 months old, plenty of time.
________________________________ There are dozens of us! Dozens!
529s technically count towards the Expected Family Contribution (EFC) on the FAFSA, decreasing aid eligibility. If the kid is getting money from the grandparents 529, it counts as gift income, which also goes against EFC. At this point, you're probably saying "I won't tell them about the gift money", well you could also just not tell them you have a 529. Neither the school nor the Department of Ed have any way of knowing you have it.
If the dept of ED finds a way to track 529s, the money in a 529 plan counts less towards increasing the EFC than gifts do, so having the 529 in the parent's name is better if you plan on being honest. They're the same if you're lying.
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