DQOTD: T Bill Maturity Date?

[Midpack]

I assume the maturity date is issue date plus term (e.g. 26 weeks). So a T-Bill bought at next weeks auction* should mature on Jan 4, 2024?

I could not find that stated exactly anywhere, just judging by last completed auctions. Treasury seems to use the term settlement date and issue date interchangeably (correct me if I'm wrong). Just want to confirm for tax planning, if I buy next week and it matures in 2023 I blow IRMAA** for a year! I am trying to push taxable interest into next year to optimize one last year for Roth conversions before I start Soc Sec next year. TIA

* Announcement date 6/29, auction date 7/3, settlement date 7/6

** I always use the previous years limits, e.g. I will use the 2024 IRMAA tables for 2023 MAGI, and we should have those in Sept-Oct.

 

[audreyh1]

I get Jan 4 2024. My broker always shows the maturity date, that’s how all bonds are organized. So you can double check after the announcement on this coming Thursday. The announcement will explicitly list the maturity date.

Yes, the issue date is also the settlement date.

P.S. you don’t know the IRMAA thresholds for 2025 yet FWIW, but maybe you follow https://thefinancebuff.com/medicare-irmaa-income-brackets.html

 

[Midpack]

I get Jan 4 2024. My broker always shows the maturity date, that’s how all bonds are organized. So you can double check after the announcement on this coming Thursday. The announcement will explicitly list the maturity date.

Yes, the issue date is also the settlement date.

P.S. you don’t know the IRMAA thresholds for 2025 yet FWIW, but maybe you follow https://thefinancebuff.com/medicare-irmaa-income-brackets.html

That's what I am guessing too, hopefully maturity date will be published with the announcement.

And I have seen that IRMAA bracket prediction site. I've penciled in and planned on $258K for us as this years threshold, and we'll know before the end of the year. I am not brave enough to plan on the 2025 prediction even though this years income will be applicable.

 

[audreyh1]

Yes, it is part of the announcement. You just have to look at current announcements to see that maturity date is listed, and this week’s 26 week auction results PDF (from yesterday) gives December 28 2023 as the maturity date.

https://www.treasurydirect.gov/auctions/upcoming/

 

[jldavid47]

I assume the maturity date is issue date plus term (e.g. 26 weeks). So a T-Bill bought at next weeks auction* should mature on Jan 4, 2024?

Yes. That is exactly when the 26 week will mature. Your math is correct. Don’t get into the 13 week by mistake.

 

[audreyh1]

You’ve probably already found it but here is the announcement showing maturity date Jan 4, 2024 https://www.treasurydirect.gov/instit/annceresult/press/preanre/2023/A_20230629_2.pdf

26 week rates popped higher today.