Savings Bonds and 529 Plans

Wednesday, December 15th, 2004
Categorized as: Savings Bond college education deduction

I am interested in converting my savings bonds to a 529 Plan. Please provide me with the appropriate information as to pros, cons and the proper procedure should I decide to move forward with this decision.

Tom’s response

If you otherwise qualify for the Savings Bond education deduction, you can take the deduction by redeeming your Savings Bonds and putting the money in a 529 plan.

But there are a number of limits. Here’s more information on the savings bond education deduction and how to claim it on your tax return.

In addition, here’s a link to IRS Publication 970, Tax Benefits for Education, which is a great free source of information on the tax implications of various methods of saving for college.

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FDIC Insured Certificates of Deposit can pay 1 or 2% more than savings bonds when held for a similar length of time. See top CD Rates Below:

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Comments Closed

June 1, 2010

After six years, over 400 posts, 3,680 real comments, and over 90,000 spam comments (thank you, Akismet, for making managing a blog with comments possible), I am closing public comments on I will contine to update the main articles on this site, but not the comments.

Virtually every question about Savings Bonds has been asked and answered on this site multiple times. Use the search feature (see the box in the gray area near the top of this page) or the detailed menu on the lower part of the home page to find the information you're looking for. If you have a copy of Savings Bond Advisor, you can ask me a question here.

Tom Adams

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