Posted by DigiNomad on 20th of Oct 2022 at 10:48 am
I Bonds are not taxed until they are cashed out (I realize this
is not the technical term). They pay out for 30+ years (I
think it's 30 but maybe 35), but it all rolls into principle and
there are no taxable events until sale.
It's a very interesting alternative to 529's...at the current
rate. You can gift minors 10K each each year (from all donors to
that minor). If they use proceeds to pay for qualified higher
education, there are no taxes (at the Federal level most likely.
Probably a state by state determination on tax treatment of I
bonds).
Ya, we are mixing topics here. Someone asked about T Bills and
they are taxed as I mentioned federally, not state, or local. I
Bonds are totally different and as Digi said, not taxed until
redeemed.
I Bonds are not taxed
Question for your fundamentalvalues - what are the current I-bond ...
Posted by DigiNomad on 20th of Oct 2022 at 10:48 am
I Bonds are not taxed until they are cashed out (I realize this is not the technical term). They pay out for 30+ years (I think it's 30 but maybe 35), but it all rolls into principle and there are no taxable events until sale.
It's a very interesting alternative to 529's...at the current rate. You can gift minors 10K each each year (from all donors to that minor). If they use proceeds to pay for qualified higher education, there are no taxes (at the Federal level most likely. Probably a state by state determination on tax treatment of I bonds).
Ya, we are mixing topics
Posted by fundamentalvalues on 20th of Oct 2022 at 11:02 am
Ya, we are mixing topics here. Someone asked about T Bills and they are taxed as I mentioned federally, not state, or local. I Bonds are totally different and as Digi said, not taxed until redeemed.
Ooops. Sounds like maybe I
Posted by DigiNomad on 20th of Oct 2022 at 11:18 am
Ooops. Sounds like maybe I didn't read for detail this time. Sorry about that.
Thanks, fundalmentalvalues!
Posted by mdgfain on 20th of Oct 2022 at 11:09 am
Thanks, fundalmentalvalues!