Mature savings bonds rollover to 529

Forum|Forum|4 years ago
April 5, 2022
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I've already done our 2021 taxes (and gotten the refund!). I have some paper EE bonds that matured the end of 2021 and aren't earning interest. I just found out they can be rolled into a 529, not just cashed and used to pay tuition. Our daughter is starting college in the fall. The 2022 version of Form 8815 isn't available yet. Can I redeem the bonds now, roll them into her 529 (I have a form from the plan administrator), and use the 2021 form? Does this mean I need to amend our 2021 taxes?

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Best answer by PattiF

You cannot amend the 2021 return for a transaction that happens in 2022. The bonds can be cashed in now in 2022 and rolled into a 529 anytime in the year 2022. Form 8815 will show this exclusion of interest from your income.

RobertB4444

@anonymouse1 You definitely don't need to amend the 2021 return since you are cashing in the bonds in 2022.

You will wait and file the 8815 with your 2022 return in order to exclude the interest from income because you're putting it in the 529 plan.

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anonymouse1Author

Yeah, but 1. I don't want to wait until the end of the year because the bonds aren't earning anything

2. the 2022 form isn't available yet and

3. I won't know until very close to the end of the year what our AGI is going to be, but I suspect it will be over the bottom number of the phaseout threshold. We were under the phaseout threshold in 2021, but I had no idea the bonds could have been rolled over to a 529.