3 grandchildren all with bonds that can be cashed-their name on them, my SS number
What do I do
2007-02-07 05:05:06 · 3 answers · asked by revjane 1 in Business & Finance ➔ Personal Finance
Here is a good website on 529s - http://www.529s.com
I would check with them.
2007-02-07 06:14:34 · answer #1 · answered by Anonymous · 0⤊ 0⤋
That shouldn't be a problem, as long as you are cashing them and depositing into a 529 plan. One of the nice tax benefits to those plans! The things to consider are value of the bonds and the interest rate applicable to them. In most cases, its a joke compared to the earnings potential of the 529 plan. But you should also consider the cost & earnings/historical returns of the 529 plans. Most haven't been that impressive, either!
Great resource is www.savingforcollege.com
2007-02-07 05:47:40 · answer #2 · answered by Mike 1 · 0⤊ 0⤋
Talk to your bank. They can cash the bonds and set up the 529 to put them into. The interest earned on the bonds will still be taxable, but to the children, so most likely no tax consequence. Double check with an accountant. It should be fairly easy. All 529 gain is tax-free, as long as it's used for accredited secondary education.
2007-02-07 05:14:45 · answer #3 · answered by Joseph's Mama 4 · 0⤊ 0⤋