Q: I have EE Savings Bonds and would like to know if I can use them for my son's education without having to pay taxes on them. M. H., Oviedo
A: An educational tax exclusion is available for Series EE and bonds issued in 1990 or later if certain requirements are met. These requirements relate to you, your relationship to the person going to school and the type of expenses being incurred. For complete details go to treasurydirect.gov
Q: I have an individual retirement account and a 401(k). Can I take my minimum requested distribution from only one account?
J. B., Orlando
A: You can take a distribution from one IRA to satisfy the minimum distribution from multiple IRAs, but you have to take separate distributions from IRAs and 401(k)s. This is because the IRA and 401(k) information is entered in different places on your tax form, and that is how the Internal Revenue Service keeps track of whether you have satisfied your required minimum distribution.
Q: My business income is low because of the economy. I can collect widow Social Security benefits now or wait three years. The difference is $170 per month. I can survive without the income but I want to pay off my 8 percent mortgage.
A. K., Windermere
A: Based on your situation, you would be able to pay off your mortgage sooner by applying the Social Security payments. The interest savings could offset the difference in income received. Still, you might want to check with a tax advisor before making a final decision.
Have a question? E-mail us at email@example.com. Include your name (only your initials will be printed), hometown and phone. Questions are answered by Certified Financial Planners from the Central Florida Chapter of the Financial Planning Association. Answers are for educational purposes only. Please consult your financial professional. Questions and answers may be edited for space considerations.
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Bonds could be tax-free when paying for college
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