Exempting interest on EE bonds with 529 Plan

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boater07
Posts: 573
Joined: Sun Apr 15, 2007 7:44 pm
Location: Northwest

Exempting interest on EE bonds with 529 Plan

Post by boater07 » Sat Oct 27, 2018 1:42 pm

I learned earlier on this forum that a 529 plan counts as educational expense when completing
IRS 8815. However, I have looked everywhere to find the discussion on how to get those funds
to grandkids.
Wife and I have significant bonds doubling in value next year. I recall that the interest could be
tax free if put into a new 529 plan for ourselves.
Is anyone aware what the next steps would be??

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Nate79
Posts: 5177
Joined: Thu Aug 11, 2016 6:24 pm
Location: Delaware

Re: Exempting interest on EE bonds with 529 Plan

Post by Nate79 » Sat Oct 27, 2018 8:28 pm

boater07 wrote:
Sat Oct 27, 2018 1:42 pm
I learned earlier on this forum that a 529 plan counts as educational expense when completing
IRS 8815. However, I have looked everywhere to find the discussion on how to get those funds
to grandkids.
Wife and I have significant bonds doubling in value next year. I recall that the interest could be
tax free if put into a new 529 plan for ourselves.
Is anyone aware what the next steps would be??
Here is a good website explaining the rules and links to the various gov websites for 529 for child expenses. Nowhere have I seen how to do this for grandkids.

https://www.fastweb.com/financial-aid/a ... vings-plan

ThisTimeItsDifferent
Posts: 246
Joined: Sat Jan 31, 2015 2:51 pm

Re: Exempting interest on EE bonds with 529 Plan

Post by ThisTimeItsDifferent » Sun Oct 28, 2018 12:12 pm

Wasn't there a discussion recently about putting maturing I or EE bonds into a 529 for yourself as beneficiary then transferring beneficiary to your adult child who could then use it for his/her child (or niece in that specific thread)?

viewtopic.php?t=258148

Topic Author
boater07
Posts: 573
Joined: Sun Apr 15, 2007 7:44 pm
Location: Northwest

Re: Exempting interest on EE bonds with 529 Plan

Post by boater07 » Sun Oct 28, 2018 4:25 pm

Thank you so much. I had read that subject but couldn't find it again.
I'll be cashing my EE bonds next year after they double and wanted to be reassured that I remembered correctly.
My search function just didn't get me here. :sharebeer

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