The I Bond Thread

[Finance Dave]

No, you can't buy gifts for yourself. The way we did it was to buy three $10k gifts for each other for the next three years, so we can get the good interest rate now. On January 1 of 2023, 2024, and 2025, we will deliver those $10k bonds to each other. In each of those years, we will be unable to buy I-bonds for our own account (but we could buy more gifts to be delivered in future years).

This may help

That helps a lot, thank you!

And I think I know the answer to this but I'll ask anyway just to be sure. You are PURCHASING the I bonds on today's date..but delivering them later, right? As opposed to setting up a FUTURE purchase. I see the future purchase option...but I think I want to buy TODAY.

 

[Finance Dave]

By the way, I'm having trouble with TD right now...says "unavailable"...and when I did get in it kicked me out...keeps happening. Anyone else seeing this?

 

[MuirWannabe]

Just spent one hour and 45 minutes on the phone waiting on TD customer service to answer. All because my account got locked. My mistake was I had tried to game my security question answers by just responding answer1, answer2, answer3. Then, a few days ago I got asked a security question and it locked my account quickly before I could guess my correct response. Word of advice. Don’t do what I did.

Also, back in March, I accidentally screwed up and purchased $20,000 for myself. Received an email the next day saying $10,000 would be refunded to me. Now, in October, that has not happened. So, maybe I got away with an accidental extra $10K.

I’ll tell you what. Whenever I log in to that crazy system I watch my keystrokes like a hawk. I’m nervous as heck to type something in wrong. I don’t want to be told ‘No soup for you!’

 

[Gumby]

That helps a lot, thank you!

And I think I know the answer to this but I'll ask anyway just to be sure. You are PURCHASING the I bonds on today's date..but delivering them later, right? As opposed to setting up a FUTURE purchase. I see the future purchase option...but I think I want to buy TODAY.

Yes, we bought them early this year (when the rate was 7.12%) and will simply hold them in our respective gift boxes until we can deliver them. If you set up a future purchase, you get the applicable interest on that date, and it doesn't start accruing until that date.

 

[Finance Dave]

Yes, we bought them early this year (when the rate was 7.12%) and will simply hold them in our respective gift boxes until we can deliver them. If you set up a future purchase, you get the applicable interest on that date, and it doesn't start accruing until that date.

Thank you very much Gumby for your patience with me. Working on this now.

P.S. The site is running smoothly now...they must have had an issue around noon today.

 

[connor77]

Sorry for the stupid newbie questions:
Want to buy GIFT i-bonds for my wife and her for me. We've already bought the 10k limit individually for this year but love the gift option



1. Am I adding a new registration to my account with her name?
2. Should she be the sole owner? My choices for this question are: sole owner, primary owner, beneficiary
3. If I'm supposed to enter my name for primary or beneficiary, I'd then enter my info (obviously). Not really sure what to do here? I am her beneficiary and she is mine. Just don't want to create any conflicts with our existing i-bonds.

The one thing I'm confident about is checking the "this is a gift box". Everything else...ARGHHH!

 

[Gumby]

For the sake of simplicity and to avoid being rejected as others have been, we bought everything as "sole owner". As I understand it, you can add beneficiaries later. In our case, that will probably occur after we have delivered the gift bonds to each other. Although we may cash in before we actually get around to adding beneficaries.

Yes, you need to add a new registration in your account with her name. Be sure to check "This is a gift"

 

[Linney]

1. Am I adding a new registration to my account with her name?
2. Should she be the sole owner? My choices for this question are: sole owner, primary owner, beneficiary
3. If I'm supposed to enter my name for primary or beneficiary, I'd then enter my info (obviously). Not really sure what to do here? I am her beneficiary and she is mine. Just don't want to create any conflicts with our existing i-bonds.

1. Yes. Your existing registration is for your purchases for yourself as owner. The new registration would be used to purchase gift bonds for your wife (with her as owner).
2. You can do gift bonds using EITHER sole owner or beneficiary. With sole owner, it would be your wife's name. With beneficiary, your wife would be the owner and you can be the beneficiary.
3. I understand the concern. TD can be really confusing! I did what Gumby did when I purchased my first gift bond. Then I figured out how to use the beneficiary option.

Here are the two registrations in my account:

My I-Bonds: Owner Mrs Linney WITH MR. Linney
Gift I-Bonds: Owner MR Linney. Beneficiary: Mrs Linney

Check and Double-check the registration as you move through the purchase process! If doing a gift make double sure the gift option is checked. Good luck!!

 

[connor77]

1. Yes. Your existing registration is for your purchases for yourself as owner. The new registration would be used to purchase gift bonds for your wife (with her as owner).
2. You can do gift bonds using EITHER sole owner or beneficiary. With sole owner, it would be your wife's name. With beneficiary, your wife would be the owner and you can be the beneficiary.
3. I understand the concern. TD can be really confusing! I did what Gumby did when I purchased my first gift bond. Then I figured out how to use the beneficiary option.

Here are the two registrations in my account:

My I-Bonds: Owner Mrs Linney WITH MR. Linney
Gift I-Bonds: Owner MR Linney. Beneficiary: Mrs Linney

Check and Double-check the registration as you move through the purchase process! If doing a gift make double sure the gift option is checked. Good luck!!

Thank you Linney and Gumby!

I can't even log into TD and haven't been able to for most of today. I'm assuming there's tons of traffic that the site can't handle causing issues.

 

[Finance Dave]

Thank you Linney and Gumby!

I can't even log into TD and haven't been able to for most of today. I'm assuming there's tons of traffic that the site can't handle causing issues.

I had a lot of issues around noon...evidently they are having problems. Keep trying and don't throw your coffee mug through the screen when you get kicked out after entering all your info and before clicking submit.

 

[connor77]

I had a lot of issues around noon...evidently they are having problems. Keep trying and don't throw your coffee mug through the screen when you get kicked out after entering all your info and before clicking submit.

Okay...It wasn't just me. Good grief that was painful. I tried multiple browsers, multiple times and still got denied. Will try again!

 

[pb4uski]

I'm confused. You say you each bought "gifts" for each other? I thought that any gift bought counted towards the gifted person's annual purchase limit...so how does that help? If you bought your own $10k, how can your DW buy you a gift for $10k and not exceed the $10k/year limit? What am I missing? I see that you say the gifts are for future years, but why not just buy your own rather than gifts?

No, gift bought for someone else do not count towards their annual allowance. It counts when the gift is "delivered"... moved from your gift box to the recipients TD account.

DW generously bought my 2023, 2024 and 2025 allowances for me last May... and I reciprocated.

 

[Mulligan]

Under what circumstances do you think they would assign a fixed rate? I am just curious, as I do not know why. To me, it seems if they wanted to add an incentive to buy the bonds they would assign a fixed rate component. But, given the low purchase limit, there does not seem, to me, a desire to give folks more reasons to buy I bonds in the current inflation scenario (I did see the above post about a bill being introduced to increase the limit).

Its hard to know, because Treasury deliberately will not disclose their reasoning or criteria. But yes you did answer one part already. “Incentive to buy” has never been a reason to have a fixed component. They dropped the max limit from 30k down to 10k, many years ago, and didnt even index it to inflation. So they definitely have little concern to increase participation. In fact they are probably pissed they had to hire more people over this near term blip in interest.

 

[beowulf]

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 will not be able to buy further I bonds during that calendar year. She can, however, buy gift bonds for others. Of course, the gift bonds earn interest from the month they were purchased.

 

[braumeister]

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.

You're reading it correctly.
Only $10K per account per year, whether purchased or received as a gift.

ETA: But you can have as many as you like in your gift box, ready to deliver later.

 

[ncbill]

So how long can you defer interest?

I'm doing Roth conversions over the next several years and so want to minimize realizing ordinary income in that time period.

 

[jj]

So how long can you defer interest?

I'm doing Roth conversions over the next several years and so want to minimize realizing ordinary income in that time period.

30 years

 

[beowulf]

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

 

[jj]

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

True, but no state or local income taxes though.

 

[beowulf]

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

 

[Sunset]

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

Still no State or local tax

 

[Finance Dave]

No, gift bought for someone else do not count towards their annual allowance. It counts when the gift is "delivered"... moved from your gift box to the recipients TD account.

DW generously bought my 2023, 2024 and 2025 allowances for me last May... and I reciprocated.

Got it now, thanks!

 

[Wupot2020]

Odd Situation?!!/Gift purchase denied..

I logged into TD today to order a gift for my wife. I chose her name as the registrant which is set up as a gift. The transaction would not go through and there was a message that I had exceeded the annual limit? I don’t understand. I purchased a gift for her earlier in the year that I am holding until 2023. The gift I was attempting to purchase today was for 2024. I even tried creating a new registration for her (checked the gift option) and the transaction still wouldn’t go through and the message saying that I exceeded the annual limit came up. Did the rules change?

 

[Dash man]

I logged into TD today to order a gift for my wife. I chose her name as the registrant which is set up as a gift. The transaction would not go through and there was a message that I had exceeded the annual limit? I don’t understand. I purchased a gift for her earlier in the year that I am holding until 2023. The gift I was attempting to purchase today was for 2024. I even tried creating a new registration for her (checked the gift option) and the transaction still wouldn’t go through and the message saying that I exceeded the annual limit came up. Did the rules change?

It’s a glitch related to a new update most likely.

https://youtu.be/MChvdjJJH1k

 

[Wupot2020]

Thanks…..poor timing for sure.