Summary
Q: I have $5,000 in EE bonds. Would it be a better investment to cash them in and put the money in a mutual fund for a higher return? A: Perhaps, but not necessarily. EE bonds do enjoy some favorable tax treatment.
First, you may elect to have the interest compound tax-free each year and defer taxes on the interest until the bond is cashed in.See the full content of this document
Extract
Time to Cash in Treasury Bonds?
Second, subject to the bondholder's income being below certain thresholds (singles with adjusted gross incomes below $74,850 and married couples filing jointly below $1...
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