Got a question about taxes or investing? You can write me at beth.pinsker@marketwatch.com.
Dear MarketWatch,
I have many mature EE savings bonds that I inherited from my mother as her pay-on-death beneficiary.
I have been redeeming a few every year to avoid paying a large amount of taxes at one time.
What should I do if I want to redeem them now and pay the tax — or have it withheld — and not wait until I file my tax return in April?
Susan
Dear Susan,
Savings bonds are supposed to be a simple, secure investment, but 30-plus years later, it probably doesn’t seem that way. EE bonds (and E bonds before them) were the Series I bonds of their day – popular gifts for birthdays and college savings, but not so prevalent today when everyone is chasing after high-yield investments.
Fortunately, you have the certificates and a clear designation of ownership. A lot of people forget…
