Trump-Republican tax plan, Bad for large families

[yitzf]

But if tuition is $2,000-$3,000 up to age 14 or 15, and then it's anywhere between $5,000 and $15,000 per year, a family might put away a some money early on, to make it easier later, especially if there's a tax deduction. A family living in NY on $150,000 (and more) can use a tax deduction, and could still be struggling, getting serious reprieve from this.

I hear. A family making 150k and contributes 10K will save about $650 in NY state tax.

[ExGingi]

I hear. A family making 150k and contributes 10K will save about $650 in NY state tax.

And growth is tax free.

529s also work in Estate planning situations allowing lumping together 5 years of annual exclusions (at least that's what the rule was when I looked at it). But that's definitely a benefit for the rich.

[EJB]

But if tuition is $2,000-$3,000 up to age 14 or 15, and then it's anywhere between $5,000 and $15,000 per year, a family might put away a some money early on, to make it easier later, especially if there's a tax deduction. A family living in NY on $150,000 (and more) can use a tax deduction, and could still be struggling, getting serious reprieve from this.

Yes. IMO it’s more about saving for tuition. Tax benefits are a plus. But even if the accounts weren’t tax advantaged, it still makes sense to set aside money explicitly for tuition every year.

[Qwertyuiop]

That's funny

[CPA]

As far as I know there is not a limit as to how long funds must stay in the 529 plan before they are withdrawn.

[ExGingi]

As far as I know there is not a limit as to how long funds must stay in the 529 plan before they are withdrawn.

IIRC, the last time I checked they can stay as short as you want, but must be used by the time the beneficiary is 30 years old, or rolled over to a qualifying family member.

[CPA]

So you can contribute 10k in 2018 and get the tax benefit (if the state ur living in has one) and the next day pay your tuition from the 529 account. This could benefit everyone not just those who have extra funds to put away to grow tax free.

[ExGingi]

So you can contribute 10k in 2018 and get the tax benefit (if the state ur living in has one) and the next day pay your tuition from the 529 account. This could benefit everyone not just those who have extra funds to put away to grow tax free.

Not sure that the specific plan wouldn't have fees that would make that an unattractive option.

[mercaz1]

one problem with 529 plans is that they count towards student loans so you might get reduced amount of federal loans if you have a large amount in a 529 plan

[ExGingi]

one problem with 529 plans is that they count towards student loans so you might get reduced amount of federal loans if you have a large amount in a 529 plan

Indeed, though it seems like there are some (limited) workarounds.

But if 529 plans will be able to be used for K-12, financial aid is a non-issue.

[Deal Guy]

What is this thing I'm hearing about Rubio and Lee pushing to raise the corporate tax to 22% and to use that money to give larger child tax credit benefits to families with kids?

[Boruch999]

What is this thing I'm hearing about Rubio and Lee pushing to raise the corporate tax to 22% and to use that money to give larger child tax credit benefits to families with kids?

https://www.wsj.com/articles/the-rubio-schumer-amendment-1511998489

[ADG]

Can the R's push this through without even one D?

[Deal Guy]

What is this thing I'm hearing about Rubio and Lee pushing to raise the corporate tax to 22% and to use that money to give larger child tax credit benefits to families with kids?

Is Rubio serious about this or will the Republicans vote down his amendment? Will Democrats vote with him on the amendment?

Does anyone know if they voted yet on his amendment?

[skyguy918]

https://www.wsj.com/articles/the-rubio-schumer-amendment-1511998489

I'm shocked - SHOCKED I tell you - that the WSJ's editorial board is disdainful of any attempts to blunt the massive gains for businesses (especially large corporations) in the proposed reforms. /s

Can the R's push this through without even one D?

They plan to pass this tax reform via reconciliation, which means they only need 50 votes (with Pence being the tie-breaker in that scenario). That means at least 3 republican senators would have to oppose. WaPo lists 10 that have voiced concerns, but I'm skeptical that there will be 3 that actually oppose it when they finally vote on it.

https://www.washingtonpost.com/graphics/2017/politics/tax-bill-senate-whip-count/?utm_term=.04d370839956

[ADG]

I'm shocked - SHOCKED I tell you - that the WSJ's editorial board is disdainful of any attempts to blunt the massive gains for businesses (especially large corporations) in the proposed reforms. /s
They plan to pass this tax reform via reconciliation, which means they only need 50 votes (with Pence being the tie-breaker in that scenario). That means at least 3 republican senators would have to oppose. WaPo lists 10 that have voiced concerns, but I'm skeptical that there will be 3 that actually oppose it when they finally vote on it.

https://www.washingtonpost.com/graphics/2017/politics/tax-bill-senate-whip-count/?utm_term=.04d370839956

o boy

[Deal Guy]

When are they voting on amendments?

[ADG]

is anyone else praying they fail and dont get anything passed?

[hachover]

is anyone else praying they fail and dont get anything passed?

Something will pass... that much I'm sure of. What will be in it is still too uncertain. Insane

[aygart]

is anyone else praying they fail and dont get anything passed?

Pelosi?