Are Series EE savings bonds a good investment for my Individual Retirement Account?


Investing in Series EE U.S. savings bonds makes sense for many people. However, you should not invest in EE bonds through your Individual Retirement Account (IRA). Series EE bonds are taxed by the federal government, but generally only when you redeem them several years in the future. The bonds are always exempt from state income taxes. Investments that are put into a traditional IRA automatically grow tax-deferred until withdrawal and investments put into a Roth IRA grow tax-free. For qualified educational expenses, Series EE bonds may be tax exempt.

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