Department of the Treasury
Question: What is the Education Savings Bond Program?
Answer: The Education Savings Bond Program permits qualified taxpayers to exclude from their gross income all or a portion of the interest earned on the redemption of eligible Series EE and Series I bonds issued after 1989. You must be at least 24 years old before the bond's issue date. To qualify for this exclusion, the taxpayer, the taxpayer's spouse, or the taxpayer's dependent at certain post-secondary educational institutions must incur tuition and other educational expenses. Persons with incomes above certain thresholds may not be eligible to participate. The tax exclusion is described in 26 U.S.C. 135 (see GPO.gov).
Tortoise wrote:Allan Roth had a comparative look at 529 plans in 2011. NY was in his top 5. Utah was the "winner."
http://www.cbsnews.com/8301-505123_162- ... n-of-2011/
letsgobobby wrote:are you maximizing all available tax-advantaged retirement space already: IRA/Roth IRA (x 2 if married), 401k (x 2 if married), HSA?
Do that, then you can cash flow part of college by diverting income from retirement savings.
Those retirement accounts come with large tax advantages so I would not suggest relinquishing that space.
DualIncomeNoDebt wrote:I-bonds. $10k per year per Social Security Number, plus the additional $5k via tax refund. Search forums on this. Not enough time for EE bonds.
HardKnocker wrote:Don't save anything for college for your kids.
Then you/they will get more financial aid.
Have about $5k in savings and investments. In addition, buy a boat, three cars, have a expensive RV (all by loans) and a large mortgage. Don't forget to buy other consumables on credit like big screen TVs, cars, etc.
Then your kid can go for free.
Don't be a dummy like me and have assets. I have to pay the full shot.