Cashing in US Savings Bonds
Is there a penalty when you cash in savings bonds after the final termination date when you are doing you income tax in years to come? Right now, I find out that the government wants you to cash in your bonds to tax it. So, if you do not cash the bonds, you will be penalized to the extent that the bonds will become valueless eventually. Where can I find out on a government web site?
Terry Says
You SHOULD cash in bonds when they mature, and pay the appropriate taxes. So far the government hasn’t been too tough on chasing people who spread out the cash-in so they don’t get a huge income bump in one year. That could impact Medicare Part B costs, and other programs. And, of course, after the bonds mature, you stop earning interest.
But to find out EVERYTHING you need to know about cashing in your savings bonds, go to www.TreasuryDirect.gov
