GladToBeFree
Dryer sheet aficionado
- Joined
- Oct 7, 2007
- Messages
- 34
I have a rather large sum of money (large for me anyway) in EE savings bonds, a majority of which will stop paying interest in 2016. I have a couple of questions. First at what tax rate is interest on EE bonds assessed? I think it's your marginal tax rate but I can't find that info anywhere easily.
Second, there is (and will be) enough interest accrued that if we cash them in all at once, we'll push our agi so bloody high that the marginal tax rate would increase due to the phaseout of the deductions. Of course that assumes my I'm correctly answering my first question.
So my thinking is to start cashing these beasts in now, or near the end of the year when I can get a handle on what my agi will be.
Does that sound like a reasonable plan? Can anyone suggest an alternative. (Other than donating the bonds to a worthy cause, such as your retirement plan )
Thanks,
Jim.
Second, there is (and will be) enough interest accrued that if we cash them in all at once, we'll push our agi so bloody high that the marginal tax rate would increase due to the phaseout of the deductions. Of course that assumes my I'm correctly answering my first question.
So my thinking is to start cashing these beasts in now, or near the end of the year when I can get a handle on what my agi will be.
Does that sound like a reasonable plan? Can anyone suggest an alternative. (Other than donating the bonds to a worthy cause, such as your retirement plan )
Thanks,
Jim.