Like many parents of school-age children, we have 529 accounts for the boys in preparation for college.
President Obama wants to increase the tax bite when those funds are withdrawn - soon for me.
You hear lots of talk about free community college, and here's how they want to pay for it - taking money already set aside for college.
According to the Investment Company Institute (the trade association for the mutual fund industry), there was $245 billion accumulated in 529 plans in 2014. With just south of 12 million accounts open, that means there’s an average balance of about $21,000 in these plans. This is not a mechanism for rich Democrats like the Kennedys or the Gates to shelter wealth.
529 plans tend to be opened up by aspirational parents who are on the “mass affluent” side of the middle class earnings spectrum. They are an odd target for a tax increase.
It's money, so Obama wants his cut.