<p>Sgs: If there is a tax year during which you would have an adjusted income low enough to qualify for a savings bond federal income tax break, you could transfer those savings bonds proceeds over tax free in that year to a 529, for use for college expenses in a future year.</p>
<p>See the savings bond discussion below.</p>
<p>[529</a> plan account transfers - Bogleheads](<a href=“http://www.bogleheads.org/wiki/529_plan_account_transfers]529”>529 plan account transfers - Bogleheads)</p>
<p>Depending upon the current interest rate that is being earned, there are a few years of savings bonds that are probably worth keeping. There doesn’t seem to be any reason for anyone to buy new ones.</p>