|
My parents want to buy my kids savings bonds (my twins are 5 months old).
Could someone shed some light on how these are taxed? They would probably be used for education.
I read something that anything under $900 in interest for kids is not taxed. So with a 3% yield, anything under $30,000 (per kid) would exempt us from taxes on the bonds?
Is interest paid along the way, or paid when redeemed (for example redeeming for education purposes at age of 18 )?
I am 35/ wife is 34. We are just barely in 15% tax bracket (AGI of ~100k, taxable income of 62k for 2007). I want to avoid interest bearing assets which might kick us into higher tax bracket.
529 plans for the kids are being considered, but then my parents would be "forced" to use the 529 options (equities) in the T Rowe Price 529 plan. That is not a bad thing, but might not be what my parents want to do.
Thx
__________________
Light travels faster than sound. That is why some people appear bright until you hear them speak. One person's stupidity is another person's job security.
|
Threaded Mode
