Archive for November, 2009
Us Savings Bond Face Value
November 21st, 2009
Question: Why would anyone buy US Savings Bonds at face value?
I just found out today that people can buy Savings Bonds from the US Treasury at face value. My question is: WHY would anyone want to do that when they can reap interest off from other types of treasury securities?
I have a BBA in finance. I literally had someone just tell me they were given a bond as a gift when they were younger that was bought at face value.
Answer: Yes, you can buy them at face value. They still earn the pitiful interest rate same as if you had bought them at 1/2 face value. Unlike other treasury securities which are sold in $1000 denominations, Savings Bonds are sold in $25 denominations. That is one of the reasons people buy them. Another reason might be tradition. For a long time people bought Savings Bonds for themselves and for their children. And I suppose they passed the tradition on to their children.
Bipartisan Fiscal Commission Third Meeting
Contributions
November 8th, 2009
How much contributions may be contributed to a child’s Coverdell Education Savings Account ESA?
What happens if more than $2000 is contributed to a Coverdell Education Savings Account ESA on behalf of a child in a calendar year?
Contributions to the Coverdell Education Savings Account ESA for the benefit of a particular child, which exceed $2,000 for a calendar year are treated as excess contributions.
If the excess contributions to the Coverdell Education Savings Account ESA (and any earnings attributable to them) are not withdrawn from the child’s Coverdell Education Savings Account ESA (or accounts) before the tax return for the year is due, the excess contributions are subject to a 6 percent excise tax penalty for each year the excess amount remains in the account.
Are there any restrictions on who can contribute to a Coverdell Education Savings Account ESA?
Any individual may contribute up to $2,000 to a child’s Coverdell Education Savings Account ESA if the individual’s modified adjusted gross income (MAGI) for the taxable year is no more than $95,000 ($190,000 for married taxpayers filing jointly).
The $2,000 maximum contribution per child is gradually reduced for individuals with MAGIs between $95,000 and $110,000 (between $190,000 and $220,000 for married taxpayers filing jointly).
For example, an unmarried person with a MAGI of $96,500 in a taxable year could make a maximum contribution per child of $1,800 for that year. Single taxpayers with MAGI above $110,000 ($220,000 for married taxpayers filing jointly) are not eligible to make Coverdell Education Savings Account ESA contributions.
Us Savings Bonds Buy
November 2nd, 2009
Question: If you go bankrupt can your debtors take your Savings Bonds and cash them in?
I was curious about buying US Saving Bonds but I wanted to know if like you can’t pay your student loans can they take the saving bond and get money on it or if your taking to court for not paying your credit card debt and the judge orders you to pay can they take the savings bond and use it for payment I wanted to know this cause I am in debt and thinking about going bankrupt so I don’t have a savings or checking account I just wanted to save money in a new way for me.
Answer: In bankruptcy Savings Bonds will be treated the same as cash or money in a savings or checking account.
If it can be exempted, then you get to keep it. If not, it will be taken to repay creditors.
Whether and how much you can exempt depends on the bankruptcy exemptions available in your state.
You cannot discharge student loans in bankruptcy. You will still have to pay them.
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