They are currently paying 6.89% right now.Good call. So far we just stashed enough in simple savings in 2022 to use in 2023 as Roth Ira contributions. We maxed out 2022 IRAs. Plus heathy amount set aside for home maintenance got painting and hopefully new deck coming up. Plus it’s all backstop strike fund money if and when.
All federal taxes are deferred until you cash them in.
For the rest of the real United States you don't have to pay state tax on interest but if I remember correctly Alaska does not have a state income tax