Rolling over EE Savings Bond into 529

[Rob3500]

I’ve done this once successfully for our 21-year-old child. I wanted to do this once more, but the investment firm is pushing back. I can see that a 529 is a QTP, eligible for contributions from a redeemed bond, when the bond meets the necessary criteria. But nowhere in government instructions can I find reference to a “rollover” from bond proceeds. Is this permitted when the student is over 18?

[Hal_Al · Accepted solution]

Q. Is a “rollover” from bond proceeds, to a 529 plan,  permitted when the student is over 18?

A.  Yes.  The student's age is not a restriction on a savings bond rollover. 

I've done so (Ohio State 529 plan).  There was a place on the the contribution form to indicate that it was a rollover and to enter the breakdown in the amounts of basis and earnings. 

Rolling over savings bonds to a 529 plan is a smart move, as 529 distributions can be used to pay room and board, whereas just cashing savings bonds cannot be used for R&B. 

[Rob3500]

Thanks. I was looking for a specific mention of “rollover” in an IRS document about bonds, but in the end, I spoke with a different agent who was familiar with this process, and told me how to proceed. There seems to be a lot of ignorance about doing this, among financial investment reps.