treasury - Linkenheimer LLP CPAs & Advisors

When is Tax Due on Series EE Savings Bonds?

You may have Series EE savings bonds that were bought many years ago. Perhaps you store them in a file cabinet or safe deposit box and rarely think about them. You may wonder how the interest you earn on EE bonds is taxed. And if they reach final maturity, you may need to take action to ensure there’s no loss of interest or unanticipated tax consequences.

Interest deferral

Series EE Bonds dated May 2005 and after earn a fixed rate of interest. Bonds purchased between May 1997 and April 30, 2005, earn a variable market-based rate of return.

Paper Series EE bonds were sold at half their face value. For example, if you own a $50 bond, you paid $25 for it. The bond isn’t worth its face value until it has matured. (The U.S. Treasury Department no longer issues EE bonds in paper form.) Electronic Series EE Bonds are sold at face value and are worth their full […]

Treasury Launches myRAs Nationwide

With the initial pilot phase of the program concluded, the Treasury has announced that myRAs (my Retirement Accounts) are now available nationwide. A myRA is a Roth IRA with Roth IRA annual contribution limits ($5,500 for 2015, $6,500 if age 50 by 12/31/15) and income eligibility limits [i.e., available to those with annual taxable income of less than $131,000 (individuals) or $193,000 (couples) in 2015]. Key features include the ability to open an account and contribute small amounts through payroll direct deposits, bank drafts, or tax refund direct deposits; no fees; balances backed by the U.S. Treasury; and account portability. People can get information and sign up for an account at myRA.gov . If you have any questions, please contact your Linkenheimer CPA.