I set up a 529 account for my daughter. My wife has some money going to I bonds via payroll deduction. I was thinking about stopping those and putting that money into the 529 account. Are there any better options? Together we have an AGI of around 160K. FWIW…I’m also paying for another daughter whose going to a local 4-year college (state affiliated), living at home.

scsiguru said:I set up a 529 account for my daughter. My wife has some money going to I bonds via payroll deduction. I was thinking about stopping those and putting that money into the 529 account. Are there any better options? Together we have an AGI of around 160K. FWIW…I’m also paying for another daughter whose going to a local 4-year college (state affiliated), living at home.How old is your daughter?

Don't know much about it, but I guess the I Bonds could be tax free if used for education as well. Are you looking for a higher return? If so it might be advantageous to switch.

richfish13 said:Don't know much about it, but I guess the I Bonds could be tax free if used for education as well.
For 2007, the AGI cutoff for getting any tax break on using I bonds for education was $128,400 (married) and your deduction gets reduced starting at $98,400 (married). OP's AGI of ~$160K is too high to take advantage of this particular tax deduction.

aughsum said:SimpleMoney said:Do both. Put aggressive stock funds in the 529 and keep the I-Bonds separate. Have ratios of each to match your risk level. Probably 60/40 is good for an 11 year old.

Then if she decides not to go to college or dies or something, you have the IBonds that you can pay tax and redeem and use for whatever.

If all goes as planned and she goes to college, you can "rollover" the IBonds directly into the 529, and its a tax-free "rollover"


w-w-wait... when "rolling over" you dont need to claim it as income? the gains remain untaxed?
Yes -- see here -- as long as your AGI isn't above the cutoff.