Do Savings Bond purchase limits impact rollovers?
Monday, June 19th, 2006
Categorized as: Cashing in US Savings Bonds • Series I US Savings Bonds • Buying US Savings Bonds
I have been investing the $30,000 maximum in Series I Savings Bonds every year. Is the $30K limit based on gross purchases or net purchases? That is, can I redeem $90K of my old savings bonds and purchase $120K in one year if the rate goes up?
Tom's response
[NOTE: As of Jan 1, 2008, the annual purchase limit has been reduced to $5,000 from $30,000.]
The limit is based on gross purchases, which makes rollovers like you're thinking about more difficult. Moreover, your old bonds are actually worth more than $30,000 now, but the limit is still $30,000.
However, keep in mind that if both you and your wife open TreasuryDirect accounts, you can each invest an additional $30,000 per year in I bonds there. So each of you would be able to buy/rollover $60,000 worth of I bonds per year ($30,000 paper + $30,000 TreasuryDirect).
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Question:
Can Series EE Bonds be rolled over to a NY 529 College Plan. Is there a Federal Tax Liability for interest already earn on these bonds. Does bonds have to be mature before the rollover.
Denis
Hi Denis - If you otherwise qualify for the Savings Bond education deduction, you can redeem Savings Bonds, put the money in a Qualified Tuition Plan, and take the normal Savings Bond education deduction against the interest the bonds have earned.
The bonds don't have to be mature under any definition of that slippery term.
What is the Annual limit on EE bonds?
Has it always been the same?
What can be done if you have more than is allowed?