Author Topic: Best way to reduce tax bill on US savings bond ee  (Read 932 times)

gbp1986

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Best way to reduce tax bill on US savings bond ee
« on: September 10, 2015, 07:59:28 PM »
Just wondering if there is any effective way to reduce the amount of tax we will owe on a US Savings Bond Class ee.  The bond comes due soon.  The principle is $5000 and the interest is $17000 for a total of $22000.  Can we roll over some of the 22000 into a tIRA to reduce the amount of tax owed?  Any other way to reduce the tax bill?  Thanks in advance.

johnny847

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Re: Best way to reduce tax bill on US savings bond ee
« Reply #1 on: September 10, 2015, 08:05:35 PM »
The only method I am aware of is if the EE bond was issued after 1989, you can use some or all of the proceeds for educational expenses tax free. A couple more details here.

There may exist others that I am not aware of.


What you cannot do is just rollover the proceeds to a tIRA without paying the taxes on the interest. The interest will be taxed as income. You're perfectly free to contribute the remainder to an IRA of course (assuming you have the earned income, yada yada).