<p>I recently heard that if I cash my savings bonds and place the cash in a 529 plan that the gain/interest is not subject to tax- does anyone have any information on this?</p>
<p>If you are the parent of a child and use the proceeds from EE bonds bought in your name, not the child's name after a certain date (I think the early nineties, not totally sure) for the child's tuition, you pay no income tax on the gain...I don't think cashing them in and putting proceeds in a 529 account is tax free though. Anyone else?</p>
<p>You have to meet certain restrictions for tax free status. I'd suggest you read this as a starter and then visit the US Fed Savings bond site</p>
<p>529</a> plans, Cashing in Savings Bonds
and this</p>
<p>also this:</p>
<p>Thanks mixer!</p>
<p>I would want to be very careful about cashing in bonds in the KID's name, though...read those rules carefully.</p>
<p>Also, look at income limits for the tax break.</p>