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New Member
posted Jan 24, 2022 11:12:22 AM

money from 401K for buying series I bonds

Hello,

I'm over 65. If I take $10000 out of a 401K and use it to buy $10000 series I bonds do I have to pay tax on the 10k or is it considered a rollover?

0 2 1460
2 Replies
Level 15
Jan 24, 2022 11:22:05 AM

It is not a rollover. You must claim it for tax purposes.

Expert Alumni
Jan 24, 2022 11:38:34 AM

You do need to pay tax on the $10,000. This will be considered as ordinary income, and is not a rollover.