Investments & Financial Planning
The most frequently asked tax questions related to Investments & Financial Planning
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Answer Tax QuestionsInvestments & Financial Planning
How is the interest on Federal EE and I bonds taxed ?
Asked Monday, November 13, 2000 by an anonymous user
The interest earned on your savings bonds is subject to federal income tax, which can be deferred until redemption, final maturity, or other taxable disposition, whichever occurs first. Savings bonds are subject to estate, inheritance, gift, or other excise taxes, whether federal or state.
Special tax benefits are available to qualified owners of EE Bonds under the Education Savings Bond Program.
Investments & Financial Planning
How long do Federal EE and I bonds earn interest for ?
Asked Monday, November 13, 2000 by an anonymous user
Federal EE and I bonds earn interest for 30 years. The interest rate is reset every 6 months for each bond. You do not have to report the interest earned as income on your tax return until you cash the bond in or it reached its final maturity, whichever comes first.
Investments & Financial Planning
I bonds- maximum purchase
Asked Monday, November 13, 2000 by an anonymous user
The maximum amount of I bonds an individual may buy each year is $10,000 in electronic bonds and $5,000 in paper I bonds. Federal I bonds cannot be exchanged for Federal HH bonds like Federal EE bonds can be.
Investments & Financial Planning
Federal EE bonds - maximum purchase
Asked Monday, November 13, 2000 by an anonymous user
You are limited to a $15,000 annual purchase of EE bonds. You buy an EE bond for half of its face value. Foe example a $100 face baond would cost $50. EE bonds can be exchanged for HH bonds.
Investments & Financial Planning
How is interest on Federal I bonds calculated ?
Asked Monday, November 13, 2000 by an anonymous user
I Bonds have an annual interest rate that reflects the combined effects of a fixed rate and a semiannual inflation rate. They are an accrual-type security. Interest, if any, is added to the bond monthly and is paid when you cash the bond.
I Bonds are sold at face value; i.e., you pay $50 for a $50 bond.
Current Rate: 3.06% through April 30, 2012
Minimum purchase:$50 for a $50 I Bond when purchasing
paper bond certificates. $25 for a $25 I bond when purchased electronically via TreasuryDirect
Investments & Financial Planning
Is there a website to check mutual funds risk ratings and portfolio allocation ?
Asked Monday, November 13, 2000 by an anonymous user
Yes. You can check risk ratings and portfolio allocations in Morningstar Mutual Funds at http://www.morningstar.com
Investments & Financial Planning
What is the most amount of EE bonds I can buy a year?
Asked Sunday, November 12, 2000 by an anonymous user
You are limited to $10,000 a year.
Investments & Financial Planning
What are EE bonds?
Asked Sunday, November 12, 2000 by an anonymous user
These bonds refer to U.S. Government bonds. All U.S. government bonds are tax exempt on the state tax return. These bonds are tax deferred as well and earn interest for 30 years. You do not report the income until you turn the bonds in. They can be rolled into HH bonds. EE bonds are bought at half their face value.
Investments & Financial Planning
What is the difference between HH and EE bonds ?
Asked Sunday, November 12, 2000 by an anonymous user
HH U.S. government bonds are designed for people who want current income. The interest is paid semi-annually and is federally taxable. EE bond interest is tax deferred until cashed in.
