Education News – Kristin Decarr
“After harsh criticism, President Obama has decided to reverse course on a proposal that would have cut the tax benefits of a popular college savings account. White House officials said the criticism had reached a point that it became too much of a distraction, and the only thing they could do was to withdraw the proposal, which would have ended the ability of families to take money out of their college savings accounts, referred to as 529 plans, tax free. The proposal had suggested that the plans were being used by the wealthy more than anyone else, and the suggestion of eliminating the tax break would in fact make more money available to middle class citizens…However, this theory turned out to be untrue. The accounts are in fact used, and relied on, by around 12 million families across the country. In addition, an increasing number of people who earn less than six figures are opening accounts.”(more)