Tax Facts

3644 / What are U.S. Individual Retirement Bonds?

Prior to TRA ’84, the IRC provided for the issuance of retirement bonds.1 These bonds were issued by the U.S. government, with interest to be paid on redemption. Sales of these bonds were suspended as of April 30, 1982.2 Subsequently, the Treasury Department announced that existing bonds could be redeemed by their holders at any time without being subject to an early distribution penalty ( Q 3677).3 Existing bonds also can be rolled over into other individual retirement plans under rules applicable to rollovers from individual retirement plans ( Q 4004).4




1.   IRC § 409, as in effect prior to repeal by TRA ’84.

2.   Treasury Release (4-27-82).

3.   Treasury Announcement (7-26-84).

4.   IRC § 409(b)(3)(C), prior to repeal.


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