Please do not change the 529 College Savings Plan. 529 Plans are a great way for families to save for college. After-tax contributions to a plan accrue earnings which can be withdrawn tax-free if used to pay for higher education. President Obama has proposed taxing the earnings on future contributions. This change in the plan would essentially eliminate a great way for saving for college. The President has implied the plans are tax havens for wealthy families, however, 70% of the plans are owned by families with annual incomes less than $150K according to the non-profit College Savings Foundation. A change to the 529 would not help the middle-class. Higher Education is very expensive and out of reach for many. Taxing 529s would make paying for college more difficult for the middle class.
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