Savings Bonds and 529 Plans

I am interested in converting my savings bonds to a 529 Plan. Please provide me with the appropriate information as to pros, cons and the proper procedure should I decide to move forward with this decision.

Tom's response

If you otherwise qualify for the Savings Bond education deduction, you can take the deduction by redeeming your Savings Bonds and putting the money in a 529 plan.

But there are a number of limits. Here's more information on the savings bond education deduction and how to claim it on your tax return.

In addition, here's a link to IRS Publication 970, Tax Benefits for Education, which is a great free source of information on the tax implications of various methods of saving for college.