Anonymous
Post 07/18/2025 19:36     Subject: Putting savings bonds in kids 529 account
Anonymous wrote:Oh, lord. That money would have been $200k without much risk invested differently. Nobody is learning from their mistakes, but willing to save some money on taxes. $10k 30 years ago is like $50k now. Say, 'thank you' for sure.
They also missed out on 30 years of learning about markets and teaching their kids.


My in-laws also have plenty of money they’ve invested in stocks and real estate over the years, these bonds are just a tiny part of their portfolio that they forgot about and just came across. So I don’t think these were a huge mistake for them; they have millions in stocks and in other mutual funds plus vacation properties.
Anonymous
Post 07/18/2025 10:01     Subject: Putting savings bonds in kids 529 account
Anonymous wrote:Oh, lord. That money would have been $200k without much risk invested differently. Nobody is learning from their mistakes, but willing to save some money on taxes. $10k 30 years ago is like $50k now. Say, 'thank you' for sure.
They also missed out on 30 years of learning about markets and teaching their kids.


Agreed should have been in the market, but no $10k in 1995 isn't $50k in today's dollars. About $21k.

https://www.minneapolisfed.org/about-us/monetary-policy/inflation-calculator
Anonymous
Post 07/18/2025 08:41     Subject: Putting savings bonds in kids 529 account
Oh, lord. That money would have been $200k without much risk invested differently. Nobody is learning from their mistakes, but willing to save some money on taxes. $10k 30 years ago is like $50k now. Say, 'thank you' for sure.
They also missed out on 30 years of learning about markets and teaching their kids.
Anonymous
Post 07/18/2025 08:08     Subject: Putting savings bonds in kids 529 account
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:My in-laws purchased several $10k bonds in their own names almost 30 years ago, and now want to give to their adult children. Bonds are about to reach maturation and each bond will be worth almost $40k pre tax. I’m trying to figure out if we can have them put them in each of our kids 529s and then taxes won’t need to be paid on the gains if used for college. Has anyone done this


How would you "put them in each of our kids 529s"? As in, lay out the steps in how you would do that.

We have money in two 529s. The only way to put money in is to write a check or initiate a transfer from a bank account, and the money then has to go into one of a list of portfolio options:

https://investor.vanguard.com/investment-products/list/529-portfolios?filters=open

Maybe there is a 529 plan where you could do what you are saying, but I know of none that are structured that way.

I also think your in-laws would still owe taxes on the gains, even if they gifted it. There is no magical way to get out of taxability like that unless they donated the bonds to a charity.


https://www.savingforcollege.com/article/how-to-rollover-us-savings-bonds-into-a-529-plan


Wow, that is quite the find, seriously props to you. Seems like a very specific carve out, had never heard of that before.

Also sounds like there are some caveats in there. Like the redemption having to happen the same year as the expenses?
Anonymous
Post 07/18/2025 07:39     Subject: Putting savings bonds in kids 529 account
I think there are lower taxes if you use the money for education expenses…though I think you need to use the proceeds fairly soon.
Anonymous
Post 07/18/2025 06:55     Subject: Putting savings bonds in kids 529 account
Tell your parents thanks!
Anonymous
Post 07/17/2025 14:53     Subject: Putting savings bonds in kids 529 account
Anonymous wrote:
Anonymous wrote:My in-laws purchased several $10k bonds in their own names almost 30 years ago, and now want to give to their adult children. Bonds are about to reach maturation and each bond will be worth almost $40k pre tax. I’m trying to figure out if we can have them put them in each of our kids 529s and then taxes won’t need to be paid on the gains if used for college. Has anyone done this


How would you "put them in each of our kids 529s"? As in, lay out the steps in how you would do that.

We have money in two 529s. The only way to put money in is to write a check or initiate a transfer from a bank account, and the money then has to go into one of a list of portfolio options:

https://investor.vanguard.com/investment-products/list/529-portfolios?filters=open

Maybe there is a 529 plan where you could do what you are saying, but I know of none that are structured that way.

I also think your in-laws would still owe taxes on the gains, even if they gifted it. There is no magical way to get out of taxability like that unless they donated the bonds to a charity.


https://www.savingforcollege.com/article/how-to-rollover-us-savings-bonds-into-a-529-plan
Anonymous
Post 07/17/2025 14:51     Subject: Putting savings bonds in kids 529 account
Anonymous wrote:My in-laws purchased several $10k bonds in their own names almost 30 years ago, and now want to give to their adult children. Bonds are about to reach maturation and each bond will be worth almost $40k pre tax. I’m trying to figure out if we can have them put them in each of our kids 529s and then taxes won’t need to be paid on the gains if used for college. Has anyone done this


How would you "put them in each of our kids 529s"? As in, lay out the steps in how you would do that.

We have money in two 529s. The only way to put money in is to write a check or initiate a transfer from a bank account, and the money then has to go into one of a list of portfolio options:

https://investor.vanguard.com/investment-products/list/529-portfolios?filters=open

Maybe there is a 529 plan where you could do what you are saying, but I know of none that are structured that way.

I also think your in-laws would still owe taxes on the gains, even if they gifted it. There is no magical way to get out of taxability like that unless they donated the bonds to a charity.
Anonymous
Post 07/17/2025 14:45     Subject: Putting savings bonds in kids 529 account
I don’t think it works that way.
Anonymous
Post 07/17/2025 14:45     Subject: Putting savings bonds in kids 529 account
I would contact a cfp for a specific answer.

Use Napfa.org to find a flat fee based reputable planner
Anonymous
Post 07/17/2025 14:42     Subject: Putting savings bonds in kids 529 account
My in-laws purchased several $10k bonds in their own names almost 30 years ago, and now want to give to their adult children. Bonds are about to reach maturation and each bond will be worth almost $40k pre tax. I’m trying to figure out if we can have them put them in each of our kids 529s and then taxes won’t need to be paid on the gains if used for college. Has anyone done this