The I Bond Thread

[Golden sunsets]

It's pretty clear in the link noted above: no joint owners and no beneficiaries. Taxes on the accrued interest due upon death of the registered owner.

 

[LarryMelman]

Surely, someone has owned I-Bonds for a year or more?

I've owned them for over 20 years. But that doesn't mean I will do your homework for you.

The redemption tables are updated every 6 months. Look at the latest tables and see how the value of a given bond changes from month to month.

 

[zaqxsw]

I update mine the first of every month and use a web based Tool Do a search on Treasury direct for: Savings Bond Calculator

Thanks, but only good for paper bonds I think. I use the same calculator for EE Bonds. Mine are so old that they are now expiring... Too bad, average is 4%.

 

[zaqxsw]

I've owned them for over 20 years. But that doesn't mean I will do your homework for you.

Noted, thanks.

 

[Dash man]

My iBond from November 2002 is now paying 8.78%...sweet!

 

[RetiredHappy]

If you have a family trust, you can buy another $10K under the trust.

 

[Gill]

My iBond from November 2002 is now paying 8.78%...sweet!

Got you beat. Mine from May 2002 is 9.19%.
Gill

 

[Dash man]

Got you beat. Mine from May 2002 is 9.19%.

Gill

Gotta love it!!!

 

[LarryMelman]

From mid 2001 (the good old days when there was no cap on purchases and you could even buy them with a credit card and earn points and whatnot) - 10.23%.

 

[Gill]

From mid 2001 (the good old days when there was no cap on purchases and you could even buy them with a credit card and earn points and whatnot) - 10.23%.

There was a cap on purchases - $30,000.
Gill

 

[Sunset]

I bonds can have a beneficiary, just like a bank account for Personal registrations.
It is not allowed for some (maybe all) entity registrations.

I did it on my personal registration and can see DW's name. I was not allowed to do it on my entity registration.

https://www.treasurydirect.gov/indiv/help/TDHelp/howdoi.htm#addsecondary

From the site:
How do I add a secondary owner or beneficiary to my securities?

Adding a secondary owner or beneficiary to securities registered in single ownership form is simple in TreasuryDirect. You can edit securities being held in Current Holdings; however, you cannot edit savings bonds held in your Gift Box. Securities in a Conversion Linked account (CLA) must first be transferred to a primary or another linked account in order to add a secondary owner.
Your electronic savings bonds and marketable securities may be registered in your name alone, your name with a secondary owner, or your name with a beneficiary. Each registrant's taxpayer identification number must be shown. Note: Registrations in entity accounts may not name a secondary owner or beneficiary. All securities in an entity account carry a registration identical to the entity account name.
To add a secondary owner or beneficiary to your securities registered in single ownership form:

• Log into your primary TreasuryDirect® account.
• Click the ManageDirect tab at the top of the page.
• Under the heading Manage My Securities click "Edit" a registration.
• On the Edit Security Registration page, choose the security type you want to edit and click "Select".
• On the Summary page, choose the security or securities you wish to edit and click "Select" (you may edit up to 50 securities to the same registration).
• On the Detail page, select the registration containing the secondary owner or beneficiary you desire from the drop-down box. (If you've never created the registration, you can do so by clicking "Add New Registration". Once you've created the new registration, the system will bring you back to the Detail page where you'll find the new registration listed in the drop-down box.) Note: Entity accounts may only have one registration. All securities in an entity account carry a registration identical to the entity account name.
• Once you've selected the desired registration, click "Submit" to complete the change in registration for the security.

 

[ImThinkin2019]

The $10,000 limit is per registration, so a married couple can by $30,000 worth with two individual registrations and one joint registration. A trust would be another way.

Dash man thank you for this. We did not realize a trust could be an entity along with ourselves. We will check this out.

 

[Dash man]

Are you sure? I question it only because it is contrary to everything else that I have read that it is $10,000/person and $20,000 for a couple. Do you have a link where this is allowed?

If so, that would be great!

Here's the deal. I was able to open three iBonds. Two individually for DW and I, and a third as a joint registration. The system did not stop me from opening the third bond and it has been issued. This morning, I got this email:

"Your purchase exceeds the annual savings bond purchase limitation. Please be
advised the limit is $10,000 per series and TIN per calendar year. Repeated
violations may result in an action by this office; for example, a refund of
account holdings and/or account closure may occur.

Thank you for using TreasuryDirect."

So the rule is you can't buy the third bond, but it's not enforced by the system and just generates an email. They took the money from my bank account and issued all the bonds. So as long as it's not done repeatedly, they seem to look the other way.

 

[pb4uski]

If that's the case that they don't seem to enforce it then I suppose that you could have skipped the joint account and just bought more that $10k in each of your individual accounts.

I wonder what they would do if we each bought $200k of i-bonds but only did it one time?

 

[Dash man]

If that's the case that they don't seem to enforce it then I suppose that you could have skipped the joint account and just bought more that $10k in each of your individual accounts.

I wonder what they would do if we each bought $200k of i-bonds but only did it one time?

That would get their attention I’m sure! [emoji23]
I’m going to buy one more each for DW and me in January. Don’t want to test the repeat offender enforcement.

 

[Golden sunsets]

I bonds can have a beneficiary, just like a bank account for Personal registrations.
It is not allowed for some (maybe all) entity registrations.

I did it on my personal registration and can see DW's name. I was not allowed to do it on my entity registration.

https://www.treasurydirect.gov/indiv/help/TDHelp/howdoi.htm#addsecondary

From the site:
How do I add a secondary owner or beneficiary to my securities?

Adding a secondary owner or beneficiary to securities registered in single ownership form is simple in TreasuryDirect. You can edit securities being held in Current Holdings; however, you cannot edit savings bonds held in your Gift Box. Securities in a Conversion Linked account (CLA) must first be transferred to a primary or another linked account in order to add a secondary owner.
Your electronic savings bonds and marketable securities may be registered in your name alone, your name with a secondary owner, or your name with a beneficiary. Each registrant's taxpayer identification number must be shown. Note: Registrations in entity accounts may not name a secondary owner or beneficiary. All securities in an entity account carry a registration identical to the entity account name.
To add a secondary owner or beneficiary to your securities registered in single ownership form:

• Log into your primary TreasuryDirect® account.
• Click the ManageDirect tab at the top of the page.
• Under the heading Manage My Securities click "Edit" a registration.
• On the Edit Security Registration page, choose the security type you want to edit and click "Select".
• On the Summary page, choose the security or securities you wish to edit and click "Select" (you may edit up to 50 securities to the same registration).
• On the Detail page, select the registration containing the secondary owner or beneficiary you desire from the drop-down box. (If you've never created the registration, you can do so by clicking "Add New Registration". Once you've created the new registration, the system will bring you back to the Detail page where you'll find the new registration listed in the drop-down box.) Note: Entity accounts may only have one registration. All securities in an entity account carry a registration identical to the entity account name.
• Once you've selected the desired registration, click "Submit" to complete the change in registration for the security.

This is great information. I successfully changed the registrations for my solely held ibonds and my husbands solely held ibonds to jointly held. I had interpreted the statement that an entity could not have a co owner or a beneficiary to mean individuals. Thanks for posting.

 

[finnski1]

This is great information. I successfully changed the registrations for my solely held ibonds and my husbands solely held ibonds to jointly held. I had interpreted the statement that an entity could not have a co owner or a beneficiary to mean individuals. Thanks for posting.

Yes. good info. I will be following this as well.

 

[Chuckanut]

Isn't it simpler to overpay the 2021 estimated taxes by about $5000 and buy a bond with the refund? Sure it's not the full $10,000, but you won't have the Feds knocking on your door either.

 

[finnski1]

Isn't it simpler to overpay the 2021 estimated taxes by about $5000 and buy a bond with the refund? Sure it's not the full $10,000, but you won't have the Feds knocking on your door either.

Seems like it. So if I am reading all this correctly, DW and I could each purchase up to $10k in I bonds and then do a $5000 paper I bond purchase with a tax refund if it is equal to or greater than $5000.

Is this correct? So total up o $25k per year.

 

[RetiredAt55.5]

Isn't it simpler to overpay the 2021 estimated taxes by about $5000 and buy a bond with the refund? Sure it's not the full $10,000, but you won't have the Feds knocking on your door either.

The problem with the tax refund bonds IMO is that they're paper. They're just a bother to deal with. First they come in the mail, and then you either have to safely store them, or send them back in to Treasury direct (again through the mail and hope/pray they get there).

I already have a stash of paper bonds, and I don't want to accumulate any more of them.

 

[Chuckanut]

Seems like it. So if I am reading all this correctly, DW and I could each purchase up to $10k in I bonds and then do a $5000 paper I bond purchase with a tax refund if it is equal to or greater than $5000.

Is this correct? So total up o $25k per year.

That's my take on it, though as a single guy it would only be $15k a year.

Hey, $15k this year, $15K next year, pretty soon it adds up to real money.

Same for $25k.

 

[finnski1]

That's my take on it, though as a single guy it would only be $15k a year.

Hey, $15k this year, $15K next year, pretty soon it adds up to real money.

Same for $25k.

I may even be wrong about that. It may be $5k in paper bonds for each ss number. So may be a total of $30k for a couple? Still researching

 

[finnski1]

I may even be wrong about that. It may be $5k in paper bonds for each ss number. So may be a total of $30k for a couple? Still researching

Heck . this guy says a couple could actually buy as much as $65k total by using trusts and a business account as well. https://thefinancebuff.com/how-to-buy-i-bonds.html

It's a longish article but this is how he summarizes it.

"If you have a trust, you’re allowed to buy another $10,000 each calendar year in a trust account. If you have a business, the business can also buy $10,000 each calendar year.
A married couple each with a revocable living trust and a self-employment business can buy up to $65,000 each calendar year:

• $10,000 in Person A’s personal account with Person B as the second owner
• $10,000 in Person B’s personal account with Person A as the second owner
• $10,000 in an account for Person A’s revocable living trust
• $10,000 in an account for Person B’s revocable living trust
• $10,000 in an account for Person A’s business
• $10,000 in an account for Person B’s business
• $5,000 using money from their tax refund

We had only one trust before. We created a second trust with software to buy another $10,000. For buying I Bonds in a trust account in general, please read Buy More I Bonds at TreasuryDirect in a Revocable Living Trust."

 

[pb4uski]

^^^ I think that's the correct interpretation. Not sure it is worth the effort/hassle of setting up trust and business account and getting separate TINs for each though.

 

[steelyman]

^^^ I think that's the correct interpretation. Not sure it is worth the effort/hassle of setting up trust and business account and getting separate TINs for each though.

I think you can reuse your SSN as the TIN for a trust account while alive. It’s worth it to me to double the $10K limit.