CHANGING OWNERSHIP OF MATURED EE SAVINGS BONDS
MAY I CHANGE BENIFICIARY OWNERSHIP OF MY MATURE PAPER EE SAINGS BONDS TO MY REVOCABLE LIVING TRUST? IF I CAN MAY I THEN AT SOME TIME IN FUTURE REDEEM THEM?
REDEEMING THEM NOW WILL AFFECT MY MEDICARE PREMIUMS.
THANK YOU
Terry Says
If your bonds have already matured, you have no choice but to redeem them — and pay the taxes. You can spread out the redemption over a couple of years, to avoid impact on your Part B premiums.
For those wondering, Medicare beneficiaries who earn over $97,000 a year – and who are enrolled in Medicare Part B and/or Medicare Part D – pay the income-related monthly adjusted amount (IRMAA) – a surcharge added to the Part B and Part D premiums. The threshold for IRMAA surcharges was quite a bit lower in 2022 (it started at $91,000), but it grew for 2023, due to inflation.
If you’re over that income level, consult your tax advisor about the impact of taking this gain.
