Savings Bonds cash in early this year with no RMD income?
Would it be wise, considering that RMDs are waived for 2020, to cash in almost matured savings bonds maturing in 2021?
Terry Says
Well, those are older bonds and so they carry a high rate of interest. If you cash them in before maturity you will lose 6 months interest. Weigh that against the amount of taxes on the gains — and be sure to figure out whether cashing them in next year when you DO have an RMD will push you into a higher tax rate or a higher payment for Medicare parts B and D, or make you ineligible for some government benefits.
You’re obviously thinking about these possibilities– so just do the math!
