Roll Savings Bonds to 529 (QTP)

Paying for College
1

<p>The interest exclusion on post 1989 Savings Bonds is only for Tuition and Fees. 529 plans (QTP) can be used for books, room & board, etc.</p>

<p>Post 1989 Savings Bonds can be rolled to a 529 plan (subject to the MAGI limit).</p>

<p>If you want to use post 1989 savings bonds for room & board, seems like you just need to roll it to a 529 plan, and then withdraw it from the 529 plan.</p>

<p>Am I missing something?</p>

2

<p>A tax loophole. Best to do it in two years - rollover the bonds to 529 in one year and distribute from 529 for qualify expenses in another year.</p>

3

<p>There is a way to get a federal tax exemption when you rollover some savings bonds to a Coverdell or a 529. I don’t remember the details.</p>