zinger1457
Thinks s/he gets paid by the post
- Joined
- Jul 22, 2007
- Messages
- 3,230
I have a couple EE Savings Bonds that I inherited that mature in 2023. They are in electronic form and I'm looking at doing partial redemptions for tax reasons, I will be in a higher tax bracket by 2023. I recall reading somewhere when I got the bonds that when doing partial redemptions the withdrawals first come out of the interest earned but now I'm not so sure that's accurate. So if I have a $5K bond now worth ~$18K (~$13K interest) and redeemed $10K then the $10K would be all interest and the full amount withdrawn would be taxable. Is this correct or do they prorate the principle/interest amount?