"The proposal, part of a tax plan released by President Barack Obama over the weekend, would scale back a significant break that Republicans generally want to preserve--taxpayers' ability to use money earned in 529 college- savings plans on a tax-free basis."
"Currently, people can withdraw money from the 529 accounts without paying taxes on the earnings. Under the Obama plan, the gains earned on those investments would be subject to tax as they are withdrawn to pay for education expenses."
Source:http://www.nasdaq.com/article/obama...-tax-benefits-meets-opposition-20150120-01396
"Currently, people can withdraw money from the 529 accounts without paying taxes on the earnings. Under the Obama plan, the gains earned on those investments would be subject to tax as they are withdrawn to pay for education expenses."
Source:http://www.nasdaq.com/article/obama...-tax-benefits-meets-opposition-20150120-01396