First, the basics of the president’s new tax proposal:
Check it out:

Obama presented his 529 tax plan during his last State of the Union address. The plan consists of raising $1 billion over 10 years by taxing capital gains realized in withdrawals from 529 savings accounts. According to surveys cited by the White House, 70 percent of 529 account assets are held by families earning over $200,000 per year.

But what exactly are 529 savings accounts — and who usually invests in them? Glenn Reynolds explains: