“Taxing college savings accounts would have created disincentives for those who save for college in favor of the federal government directing college spending, lending and handouts
Your 529 Plan Is Safe. Here’s Why the White House Changed Course
By Heritage Foundation Kate Scanlon——Bio and Archives--January 28, 2015
President Obama is abandoning his controversial plan to tax the interest on 529 savings accounts, the White House announced Tuesday.
The 529 plans are savings accounts in which parents and families can invest after-tax dollars. If the money is used for specified college costs, they don’t have to pay federal tax on the interest accumulated in these accounts.
The president’s proposal, which faced bipartisan opposition, would have “effectively end[ed]” the plans, according to the New York Times.
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