For those of you with 529s.......

https://www.atr.org/obama-tax-hike-college-savings-plans-breaks-middle-class-tax-pledge

Under current law, earnings growth in 529 plans is tax-free if account distributions are used to pay for college tuition and fees. The Obama plan will tax earnings in these accounts even if they are used to pay for college tuition and fees. wrote:

So, take the money from those that are actually saving for their kids' education and give it to those that don't so that he can offer "free" community college.

BladeRunner wrote:https://www.atr.org/obama-tax-hike-college-savings-plans-breaks-middle-class-tax-pledge



So, take the money from those that are actually saving for their kids' education and give it to those that don't so that he can offer "free" community college.

It is the progressive liberal way. It is not hard to figure out why anywhere they govern, you eventually end up with a bankrupt country full of lazy liberals. Progressive liberals are pure evil.

I'm not excited about the community college part of it, but other than that it seems fair enough to me. To pay a little more in taxes to cut the college bill in half. I would certainly come out way ahead.

Dr. Jones wrote:I'm not excited about the community college part of it, but other than that it seems fair enough to me.  To pay a little more in taxes to cut the college bill in half.  I would certainly come out way ahead.  

South Dakota doesn't have a community college system and many of the credits earned in our tech schools aren't transferable to the 4 year universities. Just a turd in the punch bowl for South Dakota.

So obviously you aren't saving for your kids college education.

Gomezz Adddams wrote:

Dr. Jones wrote:I'm not excited about the community college part of it, but other than that it seems fair enough to me.  To pay a little more in taxes to cut the college bill in half.  I would certainly come out way ahead.  

South Dakota doesn't have a community college system and many of the credits earned in our tech schools aren't transferable to the 4 year universities. Just a turd in the punch bowl for South Dakota.

So obviously you aren't saving for your kids college education.

Over $50k in 529s

Just wait until the Feds confiscate the private retirement programs and issue government bonds for their contents. Or start taxing your housing with an income tax on the imputed rent. It's just the beginning.

I'm certainly not jumping up and down about it at this point, but then there are no real specifics, and there never will be because it will never happen.  Exceptions would have to be made for states with no community colleges I'm sure.  

As I said paying for two years of a four year college would be a decent enough trade off.  Getting a master's degree or doctorate would be a whole different story.  But as I said none of these things would ever have to be hashed out because it will never happen.

$3k @ year for 2 years = $6k @ kid. Assuming an effective tax rate 18% on $50k will cost an individual $9k. Somebody with 1 kid is left with the dirty end of the stick. Person with 2 kids comes out ahead $3k but that would have been easily made up with tax free savings of the 529. BTW, South Dakota is the only state without a community college system.

Gomezz Adddams wrote:$3k @ year for 2 years = $6k @ kid. Assuming an effective tax rate 18% on $50k will cost an individual $9k. Somebody with 1 kid is left with the dirty end of the stick. Person  with 2 kids comes out ahead $3k but that would have been easily made up with tax free savings of the 529. BTW, South Dakota is the only state without a community college system.

You have kids in college?

Government is the delegation of the rights you have as an individual to act on your behalf.

If your neighbors on one side of you were a married couple with a 3 car garage and 3 brand new cars in it.  Only 2 people, no kids and they can only drive 2 cars at anyone time.  However, they rarely did that because they usually went together in the same car.

Your neighbors to the other side of your house is a family of 6 people.  Both the husband and wife work at different jobs across town from each other.  The kids have various school functions that they need to be taken to.  Yet these people cannot afford more than one car.  The difficulties of having only one car is an obvious hardship for them.

You, in your compassionate way believes this is just not right so you go over and ask the neighbor with 3 cars if they would consider giving one of their cars to your other neighbor.  They say they feel sorry for your other neighbor, but they decline.

This infuriates you so you sneak over in the middle of the night and take one of their cars without permission and give it to your poor neighbor who only has one car.  What do you think will happen to you?  You will probably go to jail because you did not have the right to redistribute another person's wealth.

Well if that is the case, how do these slimy liberals think it is right to have the GOVERNMENT do the exact same thing (wealth redistribution) for you?

Jammer wrote:Government is the delegation of the rights you have as an individual to act on your behalf.

If your neighbors on one side of you were a married couple with a 3 car garage and 3 brand new cars in it.  Only 2 people, no kids and they can only drive 2 cars at anyone time.  However, they rarely did that because they usually went together in the same car.

Your neighbors to the other side of your house is a family of 6 people.  Both the husband and wife work at different jobs across town from each other.  The kids have various school functions that they need to be taken to.  Yet these people cannot afford more than one car.  The difficulties of having only one car is an obvious hardship for them.

You, in your compassionate way believes this is just not right so you go over and ask the neighbor with 3 cars if they would consider giving one of their cars to your other neighbor.  They say they feel sorry for your other neighbor, but they decline.

This infuriates you so you sneak over in the middle of the night and take one of their cars without permission and give it to your poor neighbor who only has one car.  What do you think will happen to you?  You will probably go to jail because you did not have the right to redistribute another person's wealth.

Well if that is the case, how do these slimy liberals think it is right to have the GOVERNMENT do the exact same thing (wealth redistribution) for you?

Your analogy needs a little tweaking. A better comparison would be that there were only x number of cars in town and the one neighbor was hoarding them while the other neighbor suffered.

Dr. Jones wrote:

Gomezz Adddams wrote:$3k @ year for 2 years = $6k @ kid. Assuming an effective tax rate 18% on $50k will cost an individual $9k. Somebody with 1 kid is left with the dirty end of the stick. Person  with 2 kids comes out ahead $3k but that would have been easily made up with tax free savings of the 529. BTW, South Dakota is the only state without a community college system.

You have kids in college?

Done with college. They pretty much paid their own way with a bit of help from me. Oldest did it mostly on academic scholarships. PhD in chemistry; no debt. Youngest has a BA; mainly with loans with about 50% of her debt paid off. I would find a shift to free college fundamentally unfair to her since she and her new husband are busting their chops on this debt.

Gomezz Adddams wrote:

Dr. Jones wrote:

Gomezz Adddams wrote:$3k @ year for 2 years = $6k @ kid. Assuming an effective tax rate 18% on $50k will cost an individual $9k. Somebody with 1 kid is left with the dirty end of the stick. Person  with 2 kids comes out ahead $3k but that would have been easily made up with tax free savings of the 529. BTW, South Dakota is the only state without a community college system.

You have kids in college?

Done with college. They pretty much paid their own way with a bit of help from me. Oldest did it mostly on academic scholarships. PhD in chemistry; no debt. Youngest has a BA; mainly with loans with about 50% of her debt paid off. I would find a shift to free college fundamentally unfair to her since she and her new husband are busting their chops on this debt.  

I certainly won't argue with you on that. My question is actually a little different. I had $50k last year in 529s and I would say with what we have put in and earned we likely have $60+ now. My kids are 8,6,4,2, and 1mo. Given the fact that I only intend to pay for 4 years of state school, do you think I need to continue to invest?

Dr. Jones wrote:

Gomezz Adddams wrote:

Dr. Jones wrote:

Gomezz Adddams wrote:$3k @ year for 2 years = $6k @ kid. Assuming an effective tax rate 18% on $50k will cost an individual $9k. Somebody with 1 kid is left with the dirty end of the stick. Person  with 2 kids comes out ahead $3k but that would have been easily made up with tax free savings of the 529. BTW, South Dakota is the only state without a community college system.

You have kids in college?

Done with college. They pretty much paid their own way with a bit of help from me. Oldest did it mostly on academic scholarships. PhD in chemistry; no debt. Youngest has a BA; mainly with loans with about 50% of her debt paid off. I would find a shift to free college fundamentally unfair to her since she and her new husband are busting their chops on this debt.  

I certainly won't argue with you on that.  My question is actually a little different.  I had $50k last year in 529s and I would say with what we have put in and earned we likely have $60+ now.  My kids are 8,6,4,2, and 1mo.  Given the fact that I only intend to pay for 4 years of state school, do you think I need to continue to invest?

SDSU is currently $15k @ year. At todays rate you'll need $300k to put 5 kids through college. Costs are increasing about 5% a year. Your youngest will be looking at $36k @ year. Yeah I'd say you got some more investing ahead of you. Kind of tough to plan ahead considering Obama isn't afraid to pull the rug out from under those do.

Dr. Jones wrote:

Jammer wrote:Government is the delegation of the rights you have as an individual to act on your behalf.

If your neighbors on one side of you were a married couple with a 3 car garage and 3 brand new cars in it.  Only 2 people, no kids and they can only drive 2 cars at anyone time.  However, they rarely did that because they usually went together in the same car.

Your neighbors to the other side of your house is a family of 6 people.  Both the husband and wife work at different jobs across town from each other.  The kids have various school functions that they need to be taken to.  Yet these people cannot afford more than one car.  The difficulties of having only one car is an obvious hardship for them.

You, in your compassionate way believes this is just not right so you go over and ask the neighbor with 3 cars if they would consider giving one of their cars to your other neighbor.  They say they feel sorry for your other neighbor, but they decline.

This infuriates you so you sneak over in the middle of the night and take one of their cars without permission and give it to your poor neighbor who only has one car.  What do you think will happen to you?  You will probably go to jail because you did not have the right to redistribute another person's wealth.

Well if that is the case, how do these slimy liberals think it is right to have the GOVERNMENT do the exact same thing (wealth redistribution) for you?

Your analogy needs a little tweaking.  A better comparison would be that there were only x number of cars in town and the one neighbor was hoarding them while the other neighbor suffered.

The analogy needs no tweaking.  You are a pure socialist and that is the problem.  You are an enemy of every American who loves liberty and believes in free market capitalism.   You are one sick person.

And YOUR analogy is much closer to what happens after decades of socialism and wealth redistribution.  It is called the equal sharing of the misery and the only cars belong to the elitist leaders running the socialist state.  All you need do is visit either North Korea or Cuba to see you analogy in person.

Gomezz Adddams wrote:

Dr. Jones wrote:

Gomezz Adddams wrote:

Dr. Jones wrote:

Gomezz Adddams wrote:$3k @ year for 2 years = $6k @ kid. Assuming an effective tax rate 18% on $50k will cost an individual $9k. Somebody with 1 kid is left with the dirty end of the stick. Person  with 2 kids comes out ahead $3k but that would have been easily made up with tax free savings of the 529. BTW, South Dakota is the only state without a community college system.

You have kids in college?

Done with college. They pretty much paid their own way with a bit of help from me. Oldest did it mostly on academic scholarships. PhD in chemistry; no debt. Youngest has a BA; mainly with loans with about 50% of her debt paid off. I would find a shift to free college fundamentally unfair to her since she and her new husband are busting their chops on this debt.  

I certainly won't argue with you on that.  My question is actually a little different.  I had $50k last year in 529s and I would say with what we have put in and earned we likely have $60+ now.  My kids are 8,6,4,2, and 1mo.  Given the fact that I only intend to pay for 4 years of state school, do you think I need to continue to invest?

SDSU is currently $15k @ year. At todays rate you'll need $300k to put 5 kids through college. Costs are increasing about 5% a year. Your youngest will be looking at $36k @ year. Yeah I'd say you got some more investing ahead of you. Kind of tough to plan ahead considering Obama isn't afraid to pull the rug out from under those do.

I was told tuition was at closer to $10k are you including room and board?

Dr. Jones wrote:

Gomezz Adddams wrote:

Dr. Jones wrote:

Gomezz Adddams wrote:

Dr. Jones wrote:

Gomezz Adddams wrote:$3k @ year for 2 years = $6k @ kid. Assuming an effective tax rate 18% on $50k will cost an individual $9k. Somebody with 1 kid is left with the dirty end of the stick. Person  with 2 kids comes out ahead $3k but that would have been easily made up with tax free savings of the 529. BTW, South Dakota is the only state without a community college system.

You have kids in college?

Done with college. They pretty much paid their own way with a bit of help from me. Oldest did it mostly on academic scholarships. PhD in chemistry; no debt. Youngest has a BA; mainly with loans with about 50% of her debt paid off. I would find a shift to free college fundamentally unfair to her since she and her new husband are busting their chops on this debt.  

I certainly won't argue with you on that.  My question is actually a little different.  I had $50k last year in 529s and I would say with what we have put in and earned we likely have $60+ now.  My kids are 8,6,4,2, and 1mo.  Given the fact that I only intend to pay for 4 years of state school, do you think I need to continue to invest?

SDSU is currently $15k @ year. At todays rate you'll need $300k to put 5 kids through college. Costs are increasing about 5% a year. Your youngest will be looking at $36k @ year. Yeah I'd say you got some more investing ahead of you. Kind of tough to plan ahead considering Obama isn't afraid to pull the rug out from under those do.

I was told tuition was at closer to $10k are you including room and board?

Tuition and books about $9k. Unless you are living in a town where they are going to school you got to figure in room and board. Don't forget the various sundry expenses of gas, transportation, entertainment, etc.

http://www.sdstate.edu/admissions/financing/undergrad/cost/

Got to laugh at the $500 book estimate. If the kid is in the sciences, math, engineering, nursing.... you can add another $200-$300 per semester.

Gomezz Adddams wrote:

Dr. Jones wrote:

Gomezz Adddams wrote:

Dr. Jones wrote:

Gomezz Adddams wrote:

Dr. Jones wrote:

Gomezz Adddams wrote:$3k @ year for 2 years = $6k @ kid. Assuming an effective tax rate 18% on $50k will cost an individual $9k. Somebody with 1 kid is left with the dirty end of the stick. Person  with 2 kids comes out ahead $3k but that would have been easily made up with tax free savings of the 529. BTW, South Dakota is the only state without a community college system.

You have kids in college?

Done with college. They pretty much paid their own way with a bit of help from me. Oldest did it mostly on academic scholarships. PhD in chemistry; no debt. Youngest has a BA; mainly with loans with about 50% of her debt paid off. I would find a shift to free college fundamentally unfair to her since she and her new husband are busting their chops on this debt.  

I certainly won't argue with you on that.  My question is actually a little different.  I had $50k last year in 529s and I would say with what we have put in and earned we likely have $60+ now.  My kids are 8,6,4,2, and 1mo.  Given the fact that I only intend to pay for 4 years of state school, do you think I need to continue to invest?

SDSU is currently $15k @ year. At todays rate you'll need $300k to put 5 kids through college. Costs are increasing about 5% a year. Your youngest will be looking at $36k @ year. Yeah I'd say you got some more investing ahead of you. Kind of tough to plan ahead considering Obama isn't afraid to pull the rug out from under those do.

I was told tuition was at closer to $10k are you including room and board?

Tuition and books about $9k. Unless you are living in a town where they are going to school you got to figure in room and board. Don't forget the various sundry expenses of gas, transportation, entertainment, etc.

http://www.sdstate.edu/admissions/financing/undergrad/cost/

529's are only used on tuition right?

Dr. Jones wrote:

Gomezz Adddams wrote:

Dr. Jones wrote:

Gomezz Adddams wrote:

Dr. Jones wrote:

Gomezz Adddams wrote:

Dr. Jones wrote:

Gomezz Adddams wrote:$3k @ year for 2 years = $6k @ kid. Assuming an effective tax rate 18% on $50k will cost an individual $9k. Somebody with 1 kid is left with the dirty end of the stick. Person  with 2 kids comes out ahead $3k but that would have been easily made up with tax free savings of the 529. BTW, South Dakota is the only state without a community college system.

You have kids in college?

Done with college. They pretty much paid their own way with a bit of help from me. Oldest did it mostly on academic scholarships. PhD in chemistry; no debt. Youngest has a BA; mainly with loans with about 50% of her debt paid off. I would find a shift to free college fundamentally unfair to her since she and her new husband are busting their chops on this debt.  

I certainly won't argue with you on that.  My question is actually a little different.  I had $50k last year in 529s and I would say with what we have put in and earned we likely have $60+ now.  My kids are 8,6,4,2, and 1mo.  Given the fact that I only intend to pay for 4 years of state school, do you think I need to continue to invest?

SDSU is currently $15k @ year. At todays rate you'll need $300k to put 5 kids through college. Costs are increasing about 5% a year. Your youngest will be looking at $36k @ year. Yeah I'd say you got some more investing ahead of you. Kind of tough to plan ahead considering Obama isn't afraid to pull the rug out from under those do.

I was told tuition was at closer to $10k are you including room and board?

Tuition and books about $9k. Unless you are living in a town where they are going to school you got to figure in room and board. Don't forget the various sundry expenses of gas, transportation, entertainment, etc.

http://www.sdstate.edu/admissions/financing/undergrad/cost/

529's are only used on tuition right?

Tuition, fees, books, supplies and equipment. It can also be used for room and board if they are at least 1/2 time. Off campus living costs can't exceed estimated on campus costs.

http://en.wikipedia.org/wiki/529_plan

Gomezz Adddams wrote:

Dr. Jones wrote:

Gomezz Adddams wrote:

Dr. Jones wrote:

Gomezz Adddams wrote:

Dr. Jones wrote:

Gomezz Adddams wrote:

Dr. Jones wrote:

Gomezz Adddams wrote:$3k @ year for 2 years = $6k @ kid. Assuming an effective tax rate 18% on $50k will cost an individual $9k. Somebody with 1 kid is left with the dirty end of the stick. Person  with 2 kids comes out ahead $3k but that would have been easily made up with tax free savings of the 529. BTW, South Dakota is the only state without a community college system.

You have kids in college?

Done with college. They pretty much paid their own way with a bit of help from me. Oldest did it mostly on academic scholarships. PhD in chemistry; no debt. Youngest has a BA; mainly with loans with about 50% of her debt paid off. I would find a shift to free college fundamentally unfair to her since she and her new husband are busting their chops on this debt.  

I certainly won't argue with you on that.  My question is actually a little different.  I had $50k last year in 529s and I would say with what we have put in and earned we likely have $60+ now.  My kids are 8,6,4,2, and 1mo.  Given the fact that I only intend to pay for 4 years of state school, do you think I need to continue to invest?

SDSU is currently $15k @ year. At todays rate you'll need $300k to put 5 kids through college. Costs are increasing about 5% a year. Your youngest will be looking at $36k @ year. Yeah I'd say you got some more investing ahead of you. Kind of tough to plan ahead considering Obama isn't afraid to pull the rug out from under those do.

I was told tuition was at closer to $10k are you including room and board?

Tuition and books about $9k. Unless you are living in a town where they are going to school you got to figure in room and board. Don't forget the various sundry expenses of gas, transportation, entertainment, etc.

http://www.sdstate.edu/admissions/financing/undergrad/cost/

529's are only used on tuition right?

Tuition, fees, books, supplies and equipment. It can also be used for room and board if they are at least 1/2 time. Off campus living costs can't exceed estimated on campus costs.

http://en.wikipedia.org/wiki/529_plan

Huh, I always thought room and board wasn't covered. I guess I will have to go a little longer. I don't want to overshoot the runway if some decide to go to tech school.

Human nature often causes people to get involved with the trivial many as opposed to focusing on the vital few.  Conversation about all of the details of what can be funded thru a 529 program I am sure is of interest to those who are going to be dispersing funds from these programs in the future, but it does nothing to address the vital few issues facing this country.

We are truly headed down a road that will eventually end with a tyrannical federal government that will be uncontrollable.  Perhaps if people thought back to 1776 when our ancestors (unless you are an illegal alien) fought a bloody war to overthrow a tyrannical King George who thought he knew best and wanted to tyrannically rule the Colonists.

After being victorious, the Colonists created a form of government and a Constitution to protect their new country from ever again having to be ruled by the tyrannical whims of an individual.  Their system has been referred to as "Government of the people, by the people and for the people".   If you notice that in Lincoln's phrase, the word president was not used.

The Founding Fathers set up a system of government that relied on a representative republic to ensure that it was government by the consent of the governed.  Their system relied upon an elected body of the peoples' representatives to enact the laws.   They created the office of the President to administer these laws, NOT CREATE them.

When we have a president who addresses the country and only wants to talk about where HE is going to lead us rather than telling us about how he has faithfully defended the Constitution and carried out his duties to fully implement the laws created by the people we have a major problem.  When people are more concerned whether a 529 program can be used to cover room and board as well as tuition and doesn't even recognize that the Office of the President is headed down the road of being the Office of the Dictator, we have a major problem.

Well that was fast. Only a week after proposing that the government tax college savings accounts to pay for free community college education he pulls the plug on his proposal. Looks like the good Dr Jones is going to have increase contributions to his 529.

http://time.com/3685156/obama-529-college-savings-plans/