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maryanne25
April 4, 2025
Question

Can I cash in a ee treasury bond and put all of it into 529 plan?

  • April 4, 2025
  • 1 reply
  • 0 views
I have a michigan 529 plan set up for my grandson can I cash in a ee bond and put into plan and use it as a gift tax exemption

1 reply

S
SabrinaD2
April 4, 2025

Yes, you can  likely cash in a Series EE Treasury bond and deposit the proceeds into a 529 plan. This can be done without paying federal tax on the bond's interest if the funds are used for qualified education expenses.

  • Regarding gift tax exemption, contributions to a 529 plan are considered gifts and are subject to federal gift tax rules. 
    • However, you can use the annual gift tax exclusion amount ($18,000 per recipient in 2024) or spread larger contributions over five years to avoid gift tax.

For more detailed information, you can refer to:

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