Billions of Dollars of Maturing US Savings Bonds Creating Tax Trap

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There is an excellent article in Life Insurance Selling about the tax problems that maturing savings bonds can generate for seniors and the opportunity to help them find better alternatives. Anyone do anything in this market?

If you’re an estate, retirement, or financial planner who would like to be able to redirect monies before they get paid to the Internal Revenue Service (IRS) by uninformed seniors and instead, reposition those monies into fixed and indexed annuities, there is a low-cost, low-overhead, truly innovative strategy for you to earn excellent commissions.

Senior owners of U.S. savings bonds who redeem their matured investments without considering all of their sources of income are seeing substantial increases in their gross taxable income (GTI). Because of poor or nonexistent financial planning, this ultimately results in them needlessly paying more in federal income taxes — sometimes even to the point of reducing their Social Security benefits — than they might otherwise be required to pay.

Other senior owners of matured U.S. savings bonds who’ve made conscious decisions not to redeem those investments once they reach final maturity are in violation of IRS statutes and are risking fines, penalties, and possible interest payments on those penalties based on underreporting of taxable income. It’s a lose-lose situation for owners of already matured and about-to-mature savings bonds...........
Billions of Dollars of Maturing U.S. Savings Bonds Are Creating a Not-So-Tender Tax Trap | Articles & Archives | Article Archive | Life Insurance Selling Magazine - The Magazine for Top Life, Health & Financial Services Producers
 
AS Will Rodgers said, "I'm not as much interested in the return on my money, as I am in the return of my money."
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