OK to transfer proceeds of EEs held in Fam. Trust to 529 College Savings Plan?

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kac19
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Joined: Sat Apr 09, 2022 5:02 pm

OK to transfer proceeds of EEs held in Fam. Trust to 529 College Savings Plan?

Post by kac19 »

I recently cashed in 11 EE Savings Bonds purchased 30 years ago that matured. One bond was in the name of my dad, naming me as the beneficiary. The other 10 originally were in my parents' names, but after inheriting them, I transferred them into the name of our Family Trust.

After learning that principal and interest from matured EEs can be transferred federally tax-free into a 529 College Savings Plan (within MAGI income limits and within 60 days of redemption), I'm exploring transferring the proceeds of all 11 bonds into a 529 College Savings Plan. It's my understanding that the IRS rules allow me to transfer the proceeds originally in the name of my dad because I am the named beneficiary. But I can't find reference as to whether proceeds from matured EEs held in the name of a TRUST (under my deceased husband's S.S.) can be transferred to the 529 College Savings Plan.

Does anyone have experience/knowledge of this? As always, thank you!
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