I have EE Savings Bonds (owners: my name "with" my wife's name) post 1989 -- we were both older than 24 at bond issue date. I want to rollover/transfer the bonds to a 529 College Savings plan -- I would be the owner of the 529 plan and my wife would be the "initial" beneficiary -- this is important as the beneficiary of the 529 must be a dependent in order for the bonds rollover/transfer to be legit. At some point in the future, I plan to change the beneficiary (from my wife) to our grandchildren. I've read that this procedure is completely legitimate as a) the funds came from post-1989 EE bonds, b) my wife is my dependent (and the initial 529 beneficiary), c) beneficiary changes are allowed as long as they're family.
Here's where I need some guidance: the bonds were "INHERITED" -- they were in my moms name with me as the beneficiary but are now in my name. Any help would be greatly appreciated. Thank you!
@bronstmom said "they were in my moms name with me as the beneficiary but are now in my name"
That disqualifies them. Those bonds may not be cashed and the money rolled over to a 529 plan, tax free (tax deferred). The bonds must have been originally issued in your name.
"To qualify for the exclusion, the bonds must be Series EE or Series I savings bonds issued after 1989 in your name, or, if you are married, they may be issued in your name and your spouse's name."
Reference: https://www.treasurydirect.gov/indiv/planning/plan_education.htm