Automatically Purchase US Savings Bonds With Your 2009 Tax Refund

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As an initiative to encourage people to use their tax refund for retirement savings, tax payers can now elect to have their 2009 tax refund automatically sent to them as savings bonds.  When filing your 2009 tax return, it is as easy as checking a box on IRS Form 8888 to notify the IRS that you want to use your refund (or part of it) to purchase Series I savings bonds.  Savings bonds are a great way to protect your money from inflation & also a great option for saving for your children.  Here a few details about this 2010 savings initiative:

• The type of bonds available for this program are U.S. Series I Savings Bonds.  These low-risks bonds are a combination of two interest rates: a fixed rate that is determined by the US Treasury (currently 0.30%) & a variable rate that is based on inflation (currently 3.36%).
• Each social-security number is limited to $5,000 worth of bonds.
• Bonds must be purchased in multiples of $50 (i.e. if your refund is $280 you will get 5 $50 bonds and the remaining $30 will be deposited in a checking or savings account of your choice).  If more than $250 of bonds are purchased, you will receive higher denomination bonds ($100, $200, $500, & $1,000). 
• If you're married and filing a joint return, the bonds will be issued in both names.
• Bonds purchased will be sent to you directly by mail.
• You must hold on to Series I Bonds for at least 12 months before cashing them in (emergency exceptions apply).

This is part of President Obama's retirement savings initiative.  The idea is to give tax payers an easy way to start (or continue) building a comfortable nest egg.  Keep you ears open for changes in this program in the 2011 tax season. 

If we are currently preparing your 2009 tax return, or you plan on bringing it to us soon, please indicate if you are interested in this new way of using your tax refund.  Call us today, at 704-341-9611, or complete our contact us for on our website for further information.