The Senate Finance Committee introduced a bill today that would make the tax exemption for 529 college savings plans permanent. The Senate bill, which has bipartisan support, mirrors one that was introduced in the House last week. The 529 exemption is currently scheduled to expire in 2010, so this is great news for anyone with young kids that are looking for an effective way to save for college.
If you’re looking for more information on 529 plans, check out The Best Way to Save for College by Joseph Hurley, which is a great book on 529 plans. Also check out Joe’s website, Savingforcollege.com, which is an excellent online resource. Then again, you could always just call your rich uncle.
I am happy about this. I hope it passes.
As for any adverse effects because of all of the tax breaks, the solution is simple: Put more people to work!! (we have a very generous social/welfare/Section8 system, just make more people work and pay for their expenses and for taxes).
I obviously applaud this move but have they really considered the long term effects of all these tax breaks? I seriously think somewhere down the road all these breaks are going to have an adverse effect of some kind if we ever have a population slowdown.