Redeeming I-bonds in January 2015. A couple questions.

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HenryPorter
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Joined: Sat Dec 05, 2009 2:09 am

Redeeming I-bonds in January 2015. A couple questions.

Post by HenryPorter » Tue Nov 11, 2014 5:00 pm

I have some paper I-bonds issued in 2003. Thinking about cashing them in after the new year and using the proceeds to fund my Roth IRA. Do I get the full accrued amount as per Savings Wizard's calculations or is there a withholding done at the bank they are cashed at? Also, how do I find out if I have any unaccounted for bonds ( -ie- lost paper I-bonds)? I e-mailed the treasury dot gov site but the paperwork they sent asks me to have a bond ID number,etc. What do I do if I want to find out if a bond is missing and I have no serial number or idea of denomination? Can I call the treasury office(s) and request they send me a list of all the bonds I bought?

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Sheepdog
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Joined: Tue Feb 27, 2007 3:05 pm
Location: Indiana, retired 1998 at age 65

Re: Redeeming I-bonds in January 2015. A couple questions.

Post by Sheepdog » Tue Nov 11, 2014 5:22 pm

You have evidently read the Treasury website. It says,
If your paper bond is lost, stolen, or destroyed
We need the following information before searching for the record of your bond:
Bond serial number -- If you don’t have the bond serial number, provide all of the following:
a. Specific month and year of purchase
b. Complete social security number (for example 123-45-6789)
c. Names, including middle names or initials
d. Address (street, city, state)


It appears you need to know more than you do. It doesn't hurt to send what information you do have. Perhaps they can search your name and SS number. Try it.

As far as cashing in those 2003 I bonds. I wouldn't. They are earning a good safe return now (1.1% fixed rate plus inflation) and are inflation protected.. I would at least hold them as part of my emergency fund.
It's not what you gather, but what you scatter which tells what kind of life you have lived---Helen Walton

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Dutch
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Re: Redeeming I-bonds in January 2015. A couple questions.

Post by Dutch » Tue Nov 11, 2014 6:33 pm

Yes, the savings bond wizard gives you the correct value and that will be the amount that the bank will pay you. No withholding. You'll get a 1099 at the end of the year.

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Rob5TCP
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Location: New York, NY

Re: Redeeming I-bonds in January 2015. A couple questions.

Post by Rob5TCP » Tue Nov 11, 2014 7:40 pm

While not nearly as high as they were just 2 years earlier;
if your I bonds are from 1/2003 - 4/2003 the fixed base is 1.6%.
If you got replacement bonds today, the fixed base would be 0.0%.
Lots of people would jump at I Bonds at 1.6%.
If there are after May 1, 2003; they are at 1.1% fixed base rate.

These rates are probably much better than what you could get in
Bonds today; so if you could fund the Roth another way??

The only termination charge with I Bonds (after 1 years holding)
is 3 months if redeemed within 5 years (not applicable here).

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