i bonds

By Terry Savage on May 31, 2022 | Chicken Money

can I cash in an IRA to purchase an I bond?

Terry Says

That would probably be a mistake. First, you have to pay taxes on the IRA withdrawal. You can only invest the after-tax proceeds. Then, though current yields are eye-popping, I-bond rates could drop sharply if the Fed gets inflation under control. The new 6-monthy yield set in November and again in May every year, could be much lower. The minimum guaranteed rate on I-bonds is ZERO!

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