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I have a 2003 EE bond at a current rate 1.5%. Would it make sense to cash it in to put in a Roth IRA?

I'm not understanding the connection between cashing the bond and making the IRA contribution.

If I understand correctly, I would be able to take a retirement savings contribution credit on form 8880 for up to $2000 (depending on 1040 adjusted gross income).

The maximum contribution that can be considered for the credit is $2,000 and the maximum percentage of that which can be the credit is 50%, so the maximum credit possible is $1,000. Since this isn't a refundable credit a question. What is your income tax after any credits that have already been applied (line 13 of Form 8888)?

Rule Your Retirement Home Fool
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