Aha! Thank you. We are in Georgia. I knew I was probably missing something regarding the legality of making a retroactive 529 deposit for the previous year with regard to the timing of cashing in the Ibond. I may consider cashing $8K of the Ibonds in November 2023 in order to roll them over to the 529 plan prior to the end of this year. I will just have to crunch the numbers to see if the 3 months' lost interest will be made up for by the state income tax deduction for 2022.
Q. Is it permissible to retroactively deposit I bond funds into a 529 for the previous calendar year and still claim the federal tax exemption?
A. No. If you cash the bonds in 2024, the federal interest exclusion is reported on your 2024 return. If your state allows such a thing, that would be unusual. Reference: https://www.savingforcollege.com/article/how-to-rollover-us-savings-bonds-into-a-529-plan
which says, in part: "The expenses [including contributions to a 529 plan] must occur in the same year as the bond redemption"
