Relative had a stack of paper savings bonds on hand. We (relative, tax accountant, myself as POA) decided they should be cashed in 2023 given the elderly relative’s lower tax rate and the opportunity to reinvest at a higher interest rate thru CDs/MM fund. The bonds were averaging less than 2%.
Our local bank cashed the bonds in two rounds last year. Round 1 went to a CD with relative as owner and myself as POD. Round 2 went into relative’s money market of which I am a co-owner on record, but I do not touch this account.
Relative’s SS number was on all of the bonds. We fully expected and planned for the taxes to be assessed to them and the tax accountant had set up quarterly tax payments from the relative during 2023 in anticipation.
So I was surprised to receive a 1099INT in MY name for a bond redemption reflecting over $4k in interest. I do not own savings bonds. I will contact the bank, but have concerns this can be fixed prior to 4-15. I can’t see how my POD/money market ownership had anything to do with the bond cashing, given the relative’s name and SS# was on all of the bonds. In the meantime, there is potential for this to affect me due to MAGI thresholds in IRMAA calculations- already very close to a band ceiling.
Any thoughts? How can I fix this?
Our local bank cashed the bonds in two rounds last year. Round 1 went to a CD with relative as owner and myself as POD. Round 2 went into relative’s money market of which I am a co-owner on record, but I do not touch this account.
Relative’s SS number was on all of the bonds. We fully expected and planned for the taxes to be assessed to them and the tax accountant had set up quarterly tax payments from the relative during 2023 in anticipation.
So I was surprised to receive a 1099INT in MY name for a bond redemption reflecting over $4k in interest. I do not own savings bonds. I will contact the bank, but have concerns this can be fixed prior to 4-15. I can’t see how my POD/money market ownership had anything to do with the bond cashing, given the relative’s name and SS# was on all of the bonds. In the meantime, there is potential for this to affect me due to MAGI thresholds in IRMAA calculations- already very close to a band ceiling.
Any thoughts? How can I fix this?
Statistics: Posted by Astronaut4 — Mon Jan 29, 2024 10:08 am — Replies 0 — Views 6