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

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

2.   Treasury Release (4-27-82).

3.   Treasury Announcement (7-26-84).