Deadline nears for converting savings bonds

Jim Bourg, a member of St. Mark UMC, McAllen, shares the following information for those people holding E or EE government bonds:
Information from an AARP article has significance for senior citizens who still hold U.S. Government series E or EE savings bonds.
For example, a bond purchased in June 1964 for $18.75 is now worth more than $222, of which all the accumulated interest is fully taxable when cashed in.
The most important point in this article is the August demise of series HH bonds (paying 4 percent), into which the old E and EEs can now be converted.
By converting bonds, an investor defers the taxable E and EE interest income until the Hs are either liquidated or mature and receives the HH interest in cash from the date of conversion.
One minor omission in the AARP article: It overlooks that there are several series of E bonds that pay for 40 years, in addition to those series that quit after 30 years.
The AARP article , “Last chance to get HH savings bonds,” says:
“Time is running out for people who’ve held Series E or EE savings bonds for years and want to shelter their accumulated interest from taxes by exchanging them for Series HH bonds.
“The U.S. Treasury will do away with HH bonds after Aug. 31, so exchanges must be made before that date. Series E and EE bonds stop paying interest after 30 years.
“Since 1980 owners who have not wanted to cash them in (and pay taxes on the earnings) could exchange them for HH bonds, which pay interest twice a year for up to 20 years.
“To learn how to make an HH exchange before Aug. 31, go to www. publicdebt.treas.gov.”