Can I convert my Savings Bonds into tax-free college savings?
In order to roll savings bonds into a 529 plan as a tax-deferred event, for federal tax purposes, the bonds have to meet the following requirements:
- Must be a Series EE bond issued after 1989 or a Series I bond.
- The bond must be issued either in your name (as the sole owner) or in the name of both you and your spouse (as co-owners). If the bond is for a child, the child may not be listed as the owner or co-owner – they can be the beneficiary of the bond.
- The owner must be 24 years old before the bond's issue date.
- The bonds must be used for the owner, the spouse of the owner, or a dependent for whom you can claim an income tax exemption on your federal return. If the grandparent is the owner, they will not qualify unless they can claim the beneficiary.
- If married, you must file a joint tax return.
- You must meet the following income requirements:
- Single making less than $72,850
- Single phases out from $72,850 to $87,850
- Married making less than $109,250
- Married phases out from $109,250 to $139,250
For current income limitations and additional information on the Education Savings Bond Program please review IRS Publication 970 (Tax Benefits for Education).
- Who may contribute to a PA 529 account?
- How much can I contribute to the account?
- How do I send in money?
- How can I make regular, automatic contributions? (Payroll deduction & AIP)
- How do I roll over another 529 account into my PA 529 account?
- I have a UTMA/UGMA account. Can I roll over the funds into my child's PA 529 account?
- How often can I roll over my account?
- I have a 529 account in another state. What are the tax implications if I roll it over to a PA 529 account?
- Can I convert my Savings Bonds into tax-free college savings?
- How do I roll a Savings Bond into my PA 529 account as a tax-deferred event?
- How do I roll over a Coverdell ESA to a PA 529 account?