At the start of 2015 President Obama had a goal: use the blunt force of taxation to effectively kill 529 college savings plans.
With great pride, Americans from all walks of life rely on 529 accounts to help put their kids, grandkids, nieces and nephews through college. Earnings grow tax-free and distributions are tax-free provided the funds are used for qualified college expenses. But this year Obama decided it was time to tax the earnings in 529s while pushing people toward a government program designed by his administration’s best and brightest central planners.
obama always on the outlook to tax everything since you did not build that or make that money once again failed to take over everything he goes after. I have heard financial planners say it is not a good thing to put money aside for college while building your assets for your old age.
The same can be said of other plans that are not taxed or are tax deferred in which the government in its greed for more money wants to confiscate.
As an old guy I know that while we are called the idle rich in reality our assets can go quickly from having to maintain, replace, or support younger members of the family who can not find work in this economy.