Redeeming 100 Savings Bonds
Tuesday, November 2nd, 2004
Categorized as: Cashing in US Savings Bonds
We have a client who has more than 100 Savings Bonds she would like to redeem. She is unable to sign very easily and certainly would not be able to sign every bond. Is there a process which would only require minimal signing?
When you want to redeem more than just a few bonds, rather than asking a bank to certify your signature on each one, it’s easier to list all the bonds on Public Debt Form 1522 and have the bank certify your signature on the form rather than on each bond.
However, please advise your client that unless all these bonds have stopped earning interest, cashing in this many bonds all at once will probably cause her to pay more income tax than she needs to.
People in her position typically save a relatively large amount of money by reading the chapter in my book called Managing the deferred-tax time bomb before completing this kind of transaction.