Can we roll our Savings Bonds into a 529 Plan that we have in place for my son?

Roberto · #1 (**permalink**) 02-21-2008, 12:38 AM

I was curious whether you knew if we could roll our savings bonds into a existing 529 plan that we already have in place for my son?

Thanks a lot!

TaxGuru · #2 (**permalink**) 03-14-2008, 10:29 AM

According to the provisions and rules of the 529 Plans, it appears that you will be able accomplish this rollover without any potential tax liability.

However, according to the IRS,"the tax-free transfer of U.S. savings bond redemption proceeds into a 529 plan requires that you meet all the qualification requirements for the education exclusion, including the income limits in the year of the redemption." Therefore, it is imperative that you meet these rules prior to making the rollover.