Articles & Advice on Bonds > Tax-Free Savings Fund
|Setup A Tax-Free College Savings Account Using U.S. Savings Bonds
Many persons visit SavingsBonds.com every week and ask us how they should go about helping their grandchildren, nieces and nephews to pay for their college education, or some other high-cost expenditure, with U.S. Savings Bonds.
Tax-Free Savings Program:
For persons who would like to start one or more savings account(s) - using newly purchased U.S. Savings Bonds - that can build an extensive amount of TAX-FREE money that will be available for a grandchild, niece or nephew to use when they reach an appropriate age - as determined by YOU.
This TAX-FREE money could be used for any purpose. Unlike a 529 Savings Plan, there are no extravagant commissions or administrative fees. And, unlike a 529 Plan, savings bonds are NOT subject to the ups and downs of the stock market. When the need arises, or you desire to the time is right to give the monies to the individual, there will be NO taxes to be paid by yourself as the donor. It is also highly possible that there will be NONE, or very little taxes, to be paid by the recipient.. We call this our "TAX-FREE SAVINGS" program.
It is important for you to understand that this program is 100% legal and was established many years ago by the IRS. We will show you how to take advantage of laws and regulations that are printed in IRS Publications but are not very well know, or understood, by the general public. As we take you step-by-step through our program, we will cite the specific IRS regulations that will allow you to create/build these programs for your grandchildren, nieces, and nephews.
Please take Note: We have been challenged on numerous occasions by CPAs who call our offices and question the legality of these programs. When we advise them about the specific IRS Publications that we are relying upon as the basis of our program(s), we ask them to call us back after they have done their research. They never call us back. Hopefully, you aren't using the services of some of these uninformed "professionals".
You may also want to look into a book written by a close associate of ours - Ted Franklin - titled Pay for College with Tax Free Earnings
Jack Quinn - CEO - SavingsBonds.com
2022 Route 71 - Suite 200
Spring Lake Heights, NJ 07742