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Greetings, SeniorFool, and welcome. You asked:

<<While on the subject of EE bonds, I also have a question.

I have several hundred thousand dollars in my 401K.
Included is about $30,000 in EE bonds.

Since I am past the age of 59 1/2 could I withdraw the bonds from my 401K and convert them into HH bonds
without a tax penalty?>>

No, you cannot. If they're in the 401k plan and come out, then their value will be taxed as ordinary income. You could then invest what's left after taxes in HH bonds, but you can't withdraw the EE bonds and convert them to such. In fact, the plan won't let you take the bonds at all. You must take their cash value instead. You might be able to convert them to HH bonds within the plan itself, but your plan administrator will know the answer to that question.

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