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Strip Bond Payouts/Questions
Hello,
My Grandmother purchased a bond for me in 1987 that is coming due soon. It was purchased from a financial advisor/bank. THe document says the following:
United States Treasury SEC Stripped:
INT PMT GENERIC TINT PMT
0.000% 2/15/17 B/E DTD 08/15/87, $25,000
Can someone explain?
I assume its saying the purchase date was 8/15/87, and matures on 2/15/17 (29 1/2 years later).
Does anyone know:
1) Can I cash it prior to 2/15/17? If so, will I pay major penalties, taxes, etc?
2) Taxes. I read online somewhere that taxes are paid each year by the purchaser (my grandmother). Any idea if I would have to pay income taxes on this amount once withdrawn?
Any assistance would be so helpful! Thank you.
-WannabeWealthy
My Grandmother purchased a bond for me in 1987 that is coming due soon. It was purchased from a financial advisor/bank. THe document says the following:
United States Treasury SEC Stripped:
INT PMT GENERIC TINT PMT
0.000% 2/15/17 B/E DTD 08/15/87, $25,000
Can someone explain?
I assume its saying the purchase date was 8/15/87, and matures on 2/15/17 (29 1/2 years later).
Does anyone know:
1) Can I cash it prior to 2/15/17? If so, will I pay major penalties, taxes, etc?
2) Taxes. I read online somewhere that taxes are paid each year by the purchaser (my grandmother). Any idea if I would have to pay income taxes on this amount once withdrawn?
Any assistance would be so helpful! Thank you.
-WannabeWealthy