Last week, we wrote about the White House’s proposal to tax withdrawals from 529 plans, even if they are used for qualified education expenses. Facing pressure from politicians on both sides of the aisle, the White House abruptly withdrew the proposal this week.
President Obama recently proposed a change to 529 plan accounts that could have a significant effect on college savers. Under current law, amounts invested in a 529 plan account grow tax free and withdrawals also are not taxed as long as they are used for qualified higher education expenses.
Many of our clients come to us for advice on planning for specific large expenses that may be on the horizon. Whether it is college expenses, purchasing a new home, planning for a new baby or other large life expenses, it is essential to start early in preparing for the financial commitment.
This week, we distributed our latest quarterly market commentary, including a review of the markets in 2014 and our outlook for the markets in 2015. In short, we expect another year of solid returns from equity markets in 2015, as the combination of U.S. economic and corporate earnings growth, low interest rates, and accommodative central banks will support equity prices.
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