Recent content by beowulf

Unfortunately, as a retired person, it’s a tough decision to sell 0% fixed rate I bonds to buy new ones with a higher fixed rate. We are subject to IRMAA, which for you young whippersnappers means once we go over a certain income, we become subject to significantly higher Medicare premiums for...

All makes sense. My wife and I have met our max for 2023, so we will have to wait until Jan 24. Not sure exactly which tax bracket we will be in next year, so I’ll stand pat for now.

To recycle them, you have to cash them in, any return over what you paid for them will be taxable. It would take a sizable increase for me to do that, though I doubt it would be large enough next month.

Thank you - I assumed as much, but just wanted to make sure. Many IRS rules are confusing and obscure - to me.

I’m assuming there is no restriction on using RMDs to purchase I bonds?

Unless you live in states or localities that have no income tax to begin with.

Just keep in mind that any interest is fully taxable as ordinary income. After 30 years, the bond could triple or quadruple in value.

I think the real question concerns $10K gift bond recipients and whether they can buy I bonds in their own name in the year the gift bond is delivered. The way I read the rules, and I could be wrong, the answer is no. If Mrs X gets a $10K gift bond bought in 2022 and delivered in 2023, she...

But you can buy a $10K gift bond for your wife now and deliver it to her on Jan 1 and you will earn interest from Oct. Assuming, of course, that you’re married and that she hadn’t bought one in 2022. She will also need a Treasury Direct account.

Yep- 3Q/2020 was a good time to buy - everything I bought from March 2000 to May 2021 had a similar rate. Then it started to drop in Nov 2021 and continued until it hit 0%. Bad thing is that those 2000 I bonds mature in 8 years - and they are worth triple what I paid for them.

6% on a totally risk free investment ain't chopped liver. I'll take it unless someone knows of something better. The current TSP G Fund rate is 3.375. Also risk free, but no where near the rate of the I Bonds.

I’m not sure how the daughter will cash the gifted I bond without a treasury direct account. It will sit in your gift box (? - not sure of right term) until it moves to the daughter’s account. I don’t understand how the daughter could cash it while it resides in the parent’s account. Same...

Yep - and my parents gave them to friends and relatives at weddings, new babys, anniversaries, birthdays, etc. Every year our kids got a bond for their birthday, the amount of which kept increasing as they got older. Part of the idea was to give them something that would grow with time and...

I doubt it. They did not do it in the recent past when interest rates were near or at 0. The treasury has made it very clear that they really have no interest in I bonds or EE bonds. They have taken great pains to make the process of buying both types of bonds as difficult as possible. You...

I think the “with” wording is the same as the old “or” in terms of ownership. I won’t waste my time calling TSP to speak with a confused CSR.