Bond Interest Exclusion

[Randall]

Apparently, you can exclude bond interest if you contribute to a 529 plan.  From what I read, you have to contribute the redemption proceeds (principal and interest).  Is that so or just the interest portion?  Also, is this excluded (if contributed to a 529) even if modified adjusted gross income exceeds the regular exlusion amount?

[Lee B]

https://dwdcpa.com/resources/insights/tax-free-conversion-of-us-savings-bonds-to-529-plans

 

[Randall]

Thanks for the reference.  This appears to say the the phase out levels still apply if contributing to a 529 plan.  My previous source left this a little vague.