A New York Republican introduced legislation in the House that would waive the new tax on about 30 wealthy college endowments if they spend 25 percent of their annual investment earnings on reducing the cost for middle-income students.
For more than 30 years, colleges and universities have leaned on an obscure tax rule that allows sports boosters to make tax-deductible contributions to their teams. Athletic fundraisers around the country say that’s an advantage that generates millions in annual revenue—and one that’s threatened by Republican tax legislation.
In the latter part of the year we begin conducting year-end planning meetings with clients. For the ones with children or grandchildren, invariably part of the meeting focuses on planning and saving for college and possibly graduate school expenses.
Assets in college savings plans named for an obscure section of the Internal Revenue Service code hit a new record this summer, totaling $266.2 billion. Thats up 5.1 percent from a year ago, when assets in the accounts stood at $253.2 billion.
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