[quote=AN][quote=CA renter][quote=AN]Is this a precursor to the death of RothIRA/Roth401k?[/quote]
That’s what I was thinking while reading that. Let’s hope not.
Agree that the whole point of the 529 plans is the tax savings. Not sure this is what he should be going after.[/quote]
Luckily this won’t go anywhere, since Republicans control congress. However, what happen if Democrats again control all 3 branches and pass something like this and other Roth type accounts. Would they only make it going forward or would they make it retroactive.[/quote]
Probably true about this not going anywhere with Republicans controlling congress; not sure it would pass with Democrats, either. It’s a bit like talking about eliminating the mortgage interest deduction…they can talk about it so that they sound tough, but it just isn’t going to happen (IMO).
They could only do this going forward. The uproar would be huge if they tried to do this to existing accounts.
Really, why would anyone invest in a 529 plan if it passed? It’s bad enough that there is a penalty if the money isn’t used for qualifying expenses…take the tax savings away, and I doubt that anyone would invest in one of these plans.
