I Bonds 10K Limit Question

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jb9
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I Bonds 10K Limit Question

Post by jb9 »

I would like to take advantage of the I Bonds offering in May. I am assuming there is a 10K limit, in which I can purchase 5K via TreasuryDirect (I don't have an account) and another 5K via paper. How do I purchase them via paper? I would like to set up a Treasury Direct Account as well so any suggestions are welcome.
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Mel Lindauer
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Re: I Bonds 10K Limit Question

Post by Mel Lindauer »

jb9 wrote:I would like to take advantage of the I Bonds offering in May. I am assuming there is a 10K limit, in which I can purchase 5K via TreasuryDirect (I don't have an account) and another 5K via paper. How do I purchase them via paper? I would like to set up a Treasury Direct Account as well so any suggestions are welcome.
Most banks (but not all) are agents of the Federal Reserve. You simply go to your bank (assuming it's an agent) and fill out the paperwork, make the payment and you'll get the I Bonds in the mail in a week or two.

Remember, too, that those purchase limits are per SS#, so if you're married you can double those amounts.
Best Regards - Mel | | Semper Fi
sscritic
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Post by sscritic »

You can create your own form online, print, and mail it in with payment to buy paper bonds.
The Order for U.S. Savings Bonds is a fillable order form used to purchase paper Series EE or Series I U.S. Savings Bonds. To purchase electronic savings bonds and marketable securities, visit www.treasurydirect.gov

Please follow the instructions below to order paper savings bonds. Once you've completed all required fields, click "Continue" to print:
• A copy of your order form(s)
• Payment and mailing instructions which include an order summary to keep for your records
Instructions for
https://www.savingsbondsdirect.gov/otc/bondOrder.html
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Mel Lindauer
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Post by Mel Lindauer »

sscritic wrote:You can create your own form online, print, and mail it in with payment to buy paper bonds.
The Order for U.S. Savings Bonds is a fillable order form used to purchase paper Series EE or Series I U.S. Savings Bonds. To purchase electronic savings bonds and marketable securities, visit www.treasurydirect.gov

Please follow the instructions below to order paper savings bonds. Once you've completed all required fields, click "Continue" to print:
• A copy of your order form(s)
• Payment and mailing instructions which include an order summary to keep for your records
Instructions for
https://www.savingsbondsdirect.gov/otc/bondOrder.html
Just be aware that mailed orders get the issue date of when the mailed order is received, not when it is mailed.
Best Regards - Mel | | Semper Fi
S&L1940
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Post by S&L1940 »

I bank at BoA (sorry!) and I simply walk in and get the form from the teller. whole process takes a couple of minutes to fill out and complete the transaction.

looking forward to May...
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CTBob
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Post by CTBob »

My bank doesn't issue I bonds. I withdraw cash from them and carry it up the street to either of the two local banks that do. If your bank doesn't issue them, just call other local banks until you find one that does. However, as with my case, if you don't have an account with them they'll probably want cash.
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Post by VictoriaF »

CTBob wrote:My bank doesn't issue I bonds. I withdraw cash from them and carry it up the street to either of the two local banks that do. If your bank doesn't issue them, just call other local banks until you find one that does. However, as with my case, if you don't have an account with them they'll probably want cash.
Cash cash? Or something like a money order would do? This is a disgrace, especially after the Treasury has terminated payroll based purchases.

I don't have any bank accounts. Vanguard and a couple of credit unions serve my needs. Why should I even have to deal with a bank?

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HomerJ
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Post by HomerJ »

So after you guys get your paper Ibonds, where do you store them?

To cash them out, you just take them back to the same bank, and they will give you the money plus the applicable interest?
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Post by HomerJ »

Also, is it one piece of paper worth $5000 or 5 pieces of paper worth $1000 each or what?

What if you wanted to cash in $1500 a couple of years later.... how would that work?
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Post by Mel Lindauer »

rrosenkoetter wrote:So after you guys get your paper Ibonds, where do you store them?

To cash them out, you just take them back to the same bank, and they will give you the money plus the applicable interest?
You an store then anywere you want. Lost, stolen or destroyed paper I Bonds will be replaced.

To redeem them, you can go to your bank and they'll credit the money to your account the same as a cash deposit. Or you can go to most banks and cash in perhaps $1000 to $2000 worth, even if you don't have an account there. In a sense, they're a lot like travelers checks.
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Post by Mel Lindauer »

rrosenkoetter wrote:Also, is it one piece of paper worth $5000 or 5 pieces of paper worth $1000 each or what?

What if you wanted to cash in $1500 a couple of years later.... how would that work?
You specify the denominations you want. Perhaps 4 $1000 bonds and 10 $100 bonds would give you great flexibility. Or your could add some $500 bonds to the mix.

However, you should know that, if needed, you can do a partial redemption of paper I Bonds. Treasury will reiussue the remainder at the same rate and with the same issue date.
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Post by Chuck »

(Mel beat me to it)
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Re: I Bonds 10K Limit Question

Post by mikep »

Mel Lindauer wrote:
jb9 wrote:I would like to take advantage of the I Bonds offering in May. I am assuming there is a 10K limit, in which I can purchase 5K via TreasuryDirect (I don't have an account) and another 5K via paper. How do I purchase them via paper? I would like to set up a Treasury Direct Account as well so any suggestions are welcome.
Most banks (but not all) are agents of the Federal Reserve. You simply go to your bank (assuming it's an agent) and fill out the paperwork, make the payment and you'll get the I Bonds in the mail in a week or two.

Remember, too, that those purchase limits are per SS#, so if you're married you can double those amounts.
Mel,
Can a married couple get another 5k electronic / 5k paper I-bonds in the name of their revocable living trust? (Edit: which would make it 30K total?)
Thanks.
Mike
Last edited by mikep on Mon Apr 18, 2011 4:34 pm, edited 1 time in total.
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Post by HomerJ »

Thanks for the replies all!
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Post by stevewolfe »

It's exciting to see the inflation component be 4.60%. HOWEVER, while the treasury has never before issued an I-Bond with a negative fixed rate, it will be interesting to see if this is the time they break that tradition given than the 5 year TIPS has been negative through most of this current 6 month window. I'm tempering my expectations till I see the announcement and hope they retain the 0.0% fixed + inflation component position.
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Re: I Bonds 10K Limit Question

Post by Mel Lindauer »

mikep wrote:
Mel Lindauer wrote:
jb9 wrote:I would like to take advantage of the I Bonds offering in May. I am assuming there is a 10K limit, in which I can purchase 5K via TreasuryDirect (I don't have an account) and another 5K via paper. How do I purchase them via paper? I would like to set up a Treasury Direct Account as well so any suggestions are welcome.
Most banks (but not all) are agents of the Federal Reserve. You simply go to your bank (assuming it's an agent) and fill out the paperwork, make the payment and you'll get the I Bonds in the mail in a week or two.

Remember, too, that those purchase limits are per SS#, so if you're married you can double those amounts.
Mel,
Can a married couple get another 5k electronic / 5k paper I-bonds in the name of their revocable living trust? (Edit: which would make it 30K total?)
Thanks.
Mike
I know a trust can get another $5k in paper but not sure about TD. Trusts could not buy I Bonds via TD when it was initially set up. Not sure if that's changed or not, since I don't (and won't) use TD.
Best Regards - Mel | | Semper Fi
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Post by mikep »

Thanks Mel. Also..
stevewolfe wrote:It's exciting to see the inflation component be 4.60%. HOWEVER, while the treasury has never before issued an I-Bond with a negative fixed rate, it will be interesting to see if this is the time they break that tradition given than the 5 year TIPS has been negative through most of this current 6 month window. I'm tempering my expectations till I see the announcement and hope they retain the 0.0% fixed + inflation component position.
From here, I-bonds fixed rate will never be below 0%. http://www.treasurydirect.gov/indiv/res ... dterms.htm
The fixed rate will always be greater than or equal to 0.00%.
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Daffy
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Re: I Bonds 10K Limit Question

Post by Daffy »

Mel Lindauer wrote:...since I don't (and won't) use TD.
Mel - I'm sure you've explained this before in the past, but is there a particular reason you don't (and won't) use Treasury Direct? As a big proponent of I-Bonds I figured you would be one to max out all possible investing options. Care to elaborate why you're against using Treasury Direct?
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Re: I Bonds 10K Limit Question

Post by tfb »

Mel Lindauer wrote:I know a trust can get another $5k in paper but not sure about TD. Trusts could not buy I Bonds via TD when it was initially set up. Not sure if that's changed or not, since I don't (and won't) use TD.
It changed.
TD wrote:Effective April 2009, TreasuryDirect permits accounts for both individuals and various types of entities including trusts, estates, corporations, partnerships, etc. See Learn More about Entity Accounts for full information on the new registration types.
http://treasurydirect.gov/indiv/myaccou ... direct.htm
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Post by Socrativestor »

rrosenkoetter wrote:So after you guys get your paper Ibonds, where do you store them?

To cash them out, you just take them back to the same bank, and they will give you the money plus the applicable interest?
I believe that paper bonds can be transferred into electronic ones at TD. So if you wanted you could get all $10K at TD with a little bit of effort -- and then have everything at one place.
--Socrativestor | "Neither of us has any knowledge to boast of, but he thinks that he knows something which he does not know, whereas I am quite conscious of my ignorance."
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Re: I Bonds 10K Limit Question

Post by mikep »

tfb wrote:
Mel Lindauer wrote:I know a trust can get another $5k in paper but not sure about TD. Trusts could not buy I Bonds via TD when it was initially set up. Not sure if that's changed or not, since I don't (and won't) use TD.
It changed.
TD wrote:Effective April 2009, TreasuryDirect permits accounts for both individuals and various types of entities including trusts, estates, corporations, partnerships, etc. See Learn More about Entity Accounts for full information on the new registration types.
http://treasurydirect.gov/indiv/myaccou ... direct.htm
Alright, so it looks like a married couple with a revocable living trust can get 40K I-bonds per year:

1. 5K trust-husbands SS#-paper
2. 5K trust-wife's SS#-paper
3. 5K trust-husbands SS#-electronic- TD trust acct#1
4. 5K trust -wife's SS#-electronic - TD trust acct #2 (or can it be the same as #1)?
5. 5K-husbands SS#-paper
6. 5K-wifes SS#-paper
7. 5K-husbands SS#-electronic - TD acct #3
8. 5K-wifes SS#-electronic - TD acct #4

Everything should be titled in the trust if you have one to achieve benefits outlined by the trust (avoiding probate, etc), so one would think the order of preference on buying I-bonds would be buying in trusts name, then your own names and transferring title to the trust. Probably all in paper first, then the trust TD acct(s), so you don't have to manage 4 different TD accounts... I imagine it would be a pain to transfer title of an electronic I-bond held at TD from your own name to trust name.

Anyone bought 40K worth of I-bonds in a single year this way? Looks like major hassle, but possible. How do you consolidate your holdings so your beneficiaries don't go insane if you and your spouse kick the bucket early?
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Post by retcaveman »

A little detail that might be of interest. Since bonds earn interest from the first of the month, regardless of what day you purchase them, you will get a slight advantage if you purchase them at the end of the month.

On the back end ie when selling them, you want to do so on the first day of the month since holding them longer doesn't get you any more. Interest is credited on the first of the month.
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Re: I Bonds 10K Limit Question

Post by MooseDad »

Daffy wrote:
Mel Lindauer wrote:...since I don't (and won't) use TD.
Mel - I'm sure you've explained this before in the past, but is there a particular reason you don't (and won't) use Treasury Direct? As a big proponent of I-Bonds I figured you would be one to max out all possible investing options. Care to elaborate why you're against using Treasury Direct?
You're right; Mel has explained this many times in the past. Among the threads resulting from a google search on "site:bogleheads.org lindauer treasury direct" is this response:
Mel Lindauer wrote: FWIW, I'm hanging onto my paper bonds. If they get lost or stolen or redeemed fraudently, you'll be made whole. On the other hand, if someone cleans out your TD account, you're stuck, since Treasury says it's your responsibility and they won't make you whole.

Another thing I don't like about TD is that there is no paper trail for your heirs to follow unless you specifically create it (TD doesn't). And I'm not sure how or how fast they'd be able to get to your account, even if they knew it existed. With paper bonds, the co-owners and beneficiaries could simply go to the bank and cash them in (beneficiaries would, of course, need to provide proof of death).

Thanks, TD, but no thanks!

Best regards,

Mel
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Post by Mel Lindauer »

retcaveman wrote:A little detail that might be of interest. Since bonds earn interest from the first of the month, regardless of what day you purchase them, you will get a slight advantage if you purchase them at the end of the month.

On the back end ie when selling them, you want to do so on the first day of the month since holding them longer doesn't get you any more. Interest is credited on the first of the month.
You've got it. If you're buying at a bank that's an agent of the Federal Reserve (most are), to maximize the return for the time invested, buy on the last business day of the month and redeem them on the first of the month.
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Post by mikep »

Actually how important is it to have I-bonds titled in the name of trust? Do they have transfer on death abilities or would it have to go through the entire probate process? If beneficiary can just cash them on proof of death, probably not a big deal to buy in name of trust.. except for extending ability to purchase another 5K (10K) paper/electronic bonds.
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Rager1
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Re: I Bonds 10K Limit Question

Post by Rager1 »

mikep wrote:
tfb wrote:
Mel Lindauer wrote:I know a trust can get another $5k in paper but not sure about TD. Trusts could not buy I Bonds via TD when it was initially set up. Not sure if that's changed or not, since I don't (and won't) use TD.
It changed.
TD wrote:Effective April 2009, TreasuryDirect permits accounts for both individuals and various types of entities including trusts, estates, corporations, partnerships, etc. See Learn More about Entity Accounts for full information on the new registration types.
http://treasurydirect.gov/indiv/myaccou ... direct.htm
Alright, so it looks like a married couple with a revocable living trust can get 40K I-bonds per year:

1. 5K trust-husbands SS#-paper
2. 5K trust-wife's SS#-paper
3. 5K trust-husbands SS#-electronic- TD trust acct#1
4. 5K trust -wife's SS#-electronic - TD trust acct #2 (or can it be the same as #1)?
5. 5K-husbands SS#-paper
6. 5K-wifes SS#-paper
7. 5K-husbands SS#-electronic - TD acct #3
8. 5K-wifes SS#-electronic - TD acct #4

Everything should be titled in the trust if you have one to achieve benefits outlined by the trust (avoiding probate, etc), so one would think the order of preference on buying I-bonds would be buying in trusts name, then your own names and transferring title to the trust. Probably all in paper first, then the trust TD acct(s), so you don't have to manage 4 different TD accounts... I imagine it would be a pain to transfer title of an electronic I-bond held at TD from your own name to trust name.

Anyone bought 40K worth of I-bonds in a single year this way? Looks like major hassle, but possible. How do you consolidate your holdings so your beneficiaries don't go insane if you and your spouse kick the bucket early?
I don't have an answer to your question about $40k worth of I Bonds per year, per couple, but I just sent an email to the folks at Treasury Direct and asked.

When they respond, I'll post it here.

Ed
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Re: I Bonds 10K Limit Question

Post by mikep »

Rager1 wrote:
mikep wrote:
tfb wrote:
Mel Lindauer wrote:I know a trust can get another $5k in paper but not sure about TD. Trusts could not buy I Bonds via TD when it was initially set up. Not sure if that's changed or not, since I don't (and won't) use TD.
It changed.
TD wrote:Effective April 2009, TreasuryDirect permits accounts for both individuals and various types of entities including trusts, estates, corporations, partnerships, etc. See Learn More about Entity Accounts for full information on the new registration types.
http://treasurydirect.gov/indiv/myaccou ... direct.htm
Alright, so it looks like a married couple with a revocable living trust can get 40K I-bonds per year:

1. 5K trust-husbands SS#-paper
2. 5K trust-wife's SS#-paper
3. 5K trust-husbands SS#-electronic- TD trust acct#1
4. 5K trust -wife's SS#-electronic - TD trust acct #2 (or can it be the same as #1)?
5. 5K-husbands SS#-paper
6. 5K-wifes SS#-paper
7. 5K-husbands SS#-electronic - TD acct #3
8. 5K-wifes SS#-electronic - TD acct #4

Everything should be titled in the trust if you have one to achieve benefits outlined by the trust (avoiding probate, etc), so one would think the order of preference on buying I-bonds would be buying in trusts name, then your own names and transferring title to the trust. Probably all in paper first, then the trust TD acct(s), so you don't have to manage 4 different TD accounts... I imagine it would be a pain to transfer title of an electronic I-bond held at TD from your own name to trust name.

Anyone bought 40K worth of I-bonds in a single year this way? Looks like major hassle, but possible. How do you consolidate your holdings so your beneficiaries don't go insane if you and your spouse kick the bucket early?
I don't have an answer to your question about $40k worth of I Bonds per year, per couple, but I just sent an email to the folks at Treasury Direct and asked.

When they respond, I'll post it here.

Ed
Thanks Ed.
Also, if this is true, if someone was desperate for more I-bonds..I wonder if they could create more trust(s) and repeat the procedure to buy another 20k/trust/year.. ? I wouldn't but some might be interested.
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Rager1
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Post by Rager1 »

Here is my email to Treasury Direct:.

*********Original Email below*********

SITE: td01

Is it possible for a person to purchase the annual limit
of $5,000 of I
Bonds in each of the following registrations?

1. $5,000 Paper I Bonds in the individual's name
2. $5,000 Electronic I Bonds in the individuals's
Treasury Direct Account
3. $5,000 Paper I Bonds in the individual's Revocable
Living Trust's name
4. $5,000 Electronic I Bonds in the individual's
Revocable Living Trust's
Treasury Direct Account

In other words, an annual total of $20,000 per
individual registered as
above? And, for married couples, a total of $40,000 per
couple registered
as above?

Thank you.

*************************************

And their response:


Hello,

Yes, that is possible. The limit is per social security number, per series, per type. If your spouse wants to do the same, they'll have to use their social security number and their trust. Meaning the trust would have to have a different social security number.

For annual savings bond purchase limitation guidelines, please visit

http://www.treasurydirect.gov/indiv/res ... s_0406.htm and

http://www.treasurydirect.gov/news/pres ... elimit.htm

Sincerely,

Lorie P.
Customer Service Specialist
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Post by mikep »

Thanks Ed.. but I'm more confused from TD's response. Since revocable trusts usually use the same SSN as the trustees.. it shouldn't work then ? Usually when a trust has a different SSN is where it's irrevocable. But she says its possible?
Last edited by mikep on Tue Apr 19, 2011 5:37 pm, edited 2 times in total.
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Post by jpsfranks »

Mel Lindauer wrote:
sscritic wrote:You can create your own form online, print, and mail it in with payment to buy paper bonds.
The Order for U.S. Savings Bonds is a fillable order form used to purchase paper Series EE or Series I U.S. Savings Bonds. To purchase electronic savings bonds and marketable securities, visit www.treasurydirect.gov

Please follow the instructions below to order paper savings bonds. Once you've completed all required fields, click "Continue" to print:
• A copy of your order form(s)
• Payment and mailing instructions which include an order summary to keep for your records
Instructions for
https://www.savingsbondsdirect.gov/otc/bondOrder.html
Just be aware that mailed orders get the issue date of when the mailed order is received, not when it is mailed.
I didn't know you could buy paper bonds by mail. The last time I bought some I-Bonds it was a bit of a chore to even find someone at the bank who knew what an I-Bond was, so I'm not looking forward to repeating that experience.

Can anyone comment on how quickly mail orders are processed? If I want to purchase in May should I just send it in at the start of May to be sure, or can I afford to wait a few weeks and still have some confidence that it will go through that month?
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Post by sscritic »

mikep wrote:Thanks Ed.. but I'm more confused from TD's response. Since revocable trusts usually use the same SSN as the trustees.. it shouldn't work then ? Usually when a trust has a different SSN is where it's irrevocable. But she says its possible?
There is the Mike P family revocable trust dated 2008; it uses Mike's SSN. There is the Michelle P family revocable trust dated 2009; it uses Michelle's SSN. What's hard about that? No one said the trusts had to have the same principal trustee. The question to TD used the term "individual's revocable living trust."
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Post by pfrank »

I am confused on both spouses buying I-bonds for a revocable (living) trust. My estate attorney told my wife and I that we should only use one (either mine or my wife's) Social Security number for the trust. In our revocable trust, we use my Social Security number. When we set up our Treasury Direct Account for our trust we used my Social Security Number.

So how can my wife use her Social Security number when buying I-Bonds for the trust? Wouldn't you have to set up a separate revocable trust under her Social Security number?
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Post by sscritic »

jpsfranks wrote: Can anyone comment on how quickly mail orders are processed? If I want to purchase in May should I just send it in at the start of May to be sure, or can I afford to wait a few weeks and still have some confidence that it will go through that month?
I haven't bought I bonds by mail, but the US Treasury cashes my tax payments within two or three days of my mailing: one or two days for the US Postal Service to deliver and one day for the IRS to open the letter and cash the check electronically from my bank. I can't imagine it would take much longer in this case. I would think that one week would be sufficient.

Why don't you send your order and check on the 20th, and then report back on when the money left your checking account? Then you can make adjustments for your next purchase in November.
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Post by Rager1 »

mikep wrote:Thanks Ed.. but I'm more confused from TD's response. Since revocable trusts usually use the same SSN as the trustees.. it shouldn't work then ? Usually when a trust has a different SSN is where it's irrevocable. But she says its possible?
Yes, I am a bit confused as well. The first part of her response is clear....however, the second part causes some confusion.

The first part says the limit is per social security number, per series, per type. I take that to mean that it is possible to get $20k per social security number by using paper and electronic, using registration in the individual's name, and, in that same individual's revocable trust using the same social security number.

I believe the second part of her response means that the second person could not use the same social security number as the first person. I'm going to test it out, though, starting in May, 2011. We'll make the second purchase in November, 2011.

I haven't yet read the links that she provided. Perhaps the answer is there.

Ed

p.s. I read the links....they don't offer clarity
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Post by mikep »

Most likely the answer is 30K per year if the couple's trust has one SSN. and I believe that I-bonds have a beneficiary that bypasses probate (so its not critical to hold them in trust like your house title). So my order of preference is.. I'm kind of with Mel on preferring paper, since TD is not liable if someone hacks your account and they don't leave a paper trail for heirs..

Until I run out of money, I'll buy in this order:
paper me/ wife / trust
electronic me / wife / trust
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Post by Rager1 »

pfrank wrote:I am confused on both spouses buying I-bonds for a revocable (living) trust. My estate attorney told my wife and I that we should only use one (either mine or my wife's) Social Security number for the trust. In our revocable trust, we use my Social Security number. When we set up our Treasury Direct Account for our trust we used my Social Security Number.

So how can my wife use her Social Security number when buying I-Bonds for the trust? Wouldn't you have to set up a separate revocable trust under her Social Security number?
In my question to Treasury Direct, it is assumed that both spouses each have their own revocable trusts.

Ed
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Post by sscritic »

I have five trusts, dated 2005, 2006, 2007, 2008, and 2009 that use my social security number. My wife and I have five joint trusts dated 2000, 2001, 2002, 2003, and 2004 using her social security number. My wife also has her own trusts dated 2000, 2002, 2004, 2006, and 2008 using her social security number. We can buy $10,000 in paper bonds for the trusts as follows, buying one $1000 bond in each of the following trusts.
My 2005, 2006, 2007, 2008, and 2009 trusts (five trusts using my SSN).
Our joint 2001 and 2003 trusts (two trusts using her SSN).
Her 2000, 2002, and 2006 trusts (three trusts using her SSN).

$5000 per series per SSN per type.
lazyday
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Post by lazyday »

jpsfranks wrote:Can anyone comment on how quickly mail orders are processed? If I want to purchase in May should I just send it in at the start of May to be sure, or can I afford to wait a few weeks and still have some confidence that it will go through that month?
Can't promise same for you, but the two or three purchases of mine by mail were fairly quick, I think under a week from when I sent. I wouldn't push it though if it matters a lot, such as in April or October.

They do take a little while to send them back to you. I suppose they want your check to completely clear beyond any possibilities of reversals. The dates on the bonds were as I said above though.

I'd prefer to go into a bank and get the exact date I was there, but the first bank that I went to who told me they sold ibonds said I had to be a customer. So I became one. Then it turns out, they just mail the same form in for me! When they get around to it, of course. Closed the account.
Maybe I'll try elsewhere, and better verify they really can sell them, dated the same date. Need to redeem eventually, don't want to do by mail.
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Archie Sinclair
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Post by Archie Sinclair »

A question for those experienced with Ibonds: I'm thinking about buying some in smaller denominations for convenience in making a partial redemption. I realize that you can also get them to reissue part of a bond, but that seems complicated. Eventually, when I report income from these bonds, am I allowed to report them as one item on Schedule B, or do I have to list each one separately? I found an IRS publication, but it wasn't entirely clear, and having never owned individual bonds I simply don't know.
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Mel Lindauer
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Post by Mel Lindauer »

Archie Sinclair wrote:A question for those experienced with Ibonds: I'm thinking about buying some in smaller denominations for convenience in making a partial redemption. I realize that you can also get them to reissue part of a bond, but that seems complicated. Eventually, when I report income from these bonds, am I allowed to report them as one item on Schedule B, or do I have to list each one separately? I found an IRS publication, but it wasn't entirely clear, and having never owned individual bonds I simply don't know.
The I Bonds are tax-deferred, so you only have to report the interest when you redeem them. (You can choose to report the interest annually, but most folks like the tax-deferral.) When you do redeem them, you'll get a 1099 from your bank for the entire amount of all the I Bonds you redeemed that year, so you'll only have one number to report at tax time.
Best Regards - Mel | | Semper Fi
sscritic
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Post by sscritic »

Mel Lindauer wrote:
Archie Sinclair wrote:A question for those experienced with Ibonds: I'm thinking about buying some in smaller denominations for convenience in making a partial redemption. I realize that you can also get them to reissue part of a bond, but that seems complicated. Eventually, when I report income from these bonds, am I allowed to report them as one item on Schedule B, or do I have to list each one separately? I found an IRS publication, but it wasn't entirely clear, and having never owned individual bonds I simply don't know.
The I Bonds are tax-deferred, so you only have to report the interest when you redeem them. (You can choose to report the interest annually, but most folks like the tax-deferral.) When you do redeem them, you'll get a 1099 from your bank for the entire amount of all the I Bonds you redeemed that year, so you'll only have one number to report at tax time.
If you do choose to report interest annually, you have to report it for all your I bonds, not just some. Given what Mel says about reporting at redemption, I would think you could report all your annual interest on a single line as well. Many bonds and one line in either case.

I could ask my daughter how she reports the interest annually from the bonds I give my grandchildren each year, but she is not the IRS. If the IRS ever asks, I know she will be able to give them the details, but I doubt they will.
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pfrank
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Post by pfrank »

In order to put more than $10k per year in my revocable trust (which is under my Social Security Number), could my wife purchase a paper $5k I-Bond under her name and her Social Security Number and then have the I-Bond reissued to the trust? Am I missing something?

http://www.treasurydirect.gov/indiv/pla ... stform.htm

http://www.treasurydirect.gov/indiv/pla ... eissue.htm
baconbff
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Post by baconbff »

Im planning on purchasing 10k of ibonds this may. I was wondering what the issued date is for i bonds purchased at a bank since they mail you the actual bonds. I was planning on purchasing them at the very end of the month in person but dont want to accidentally miss out on a months interest.
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Mel Lindauer
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Post by Mel Lindauer »

baconbff wrote:Im planning on purchasing 10k of ibonds this may. I was wondering what the issued date is for i bonds purchased at a bank since they mail you the actual bonds. I was planning on purchasing them at the very end of the month in person but dont want to accidentally miss out on a months interest.
As long as your purchase them from a bank that's an agent of the Federal Reserve (most banks are), and you purchase one or before the last business day of the month (Sat. and Sun. are not business days, even if your bank is open), you'll get that month's issue date. The bonds will come in the mail in a few weeks, but they'll have the correct issue date.
Best Regards - Mel | | Semper Fi
sscritic
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Post by sscritic »

pfrank wrote:In order to put more than $10k per year in my revocable trust (which is under my Social Security Number), could my wife purchase a paper $5k I-Bond under her name and her Social Security Number and then have the I-Bond reissued to the trust? Am I missing something?

http://www.treasurydirect.gov/indiv/pla ... stform.htm

http://www.treasurydirect.gov/indiv/pla ... eissue.htm
Read the instructions again. When you write "my revocable trust" do you literally mean "my" and not "our"? Is your wife a co-trustee or a co-grantor?
USE OF FORM – Complete this form to reissue United States Savings Bonds to a personal trust created by:
a. The owner, both coowners, or either coowner
b. Some other person, provided the owner or a coowner is a beneficiary of the trust
c. For Series EE bonds or Series HH bonds, some other person, provided a beneficiary of the trust is related by blood (including legal adoption) or marriage to the owner or a coowner
If your wife is not on "your" trust, then she can not transfer a bond that is in her name alone to your trust. However, if she buys the bond with you as a co-owner and uses her social security number, than (a) applies since the trust was created by you and you will be a co-owner (the "either co-owner" part). On the other hand, if she was part of creating the trust, then your name doesn't have to be on the bond since she would qualify as a creator-owner.
greetje
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Post by greetje »

Are I Bonds available through Vanguard
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TenS2XS
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Post by TenS2XS »

sscritic wrote:You can create your own form online, print, and mail it in with payment to buy paper bonds.
The Order for U.S. Savings Bonds is a fillable order form used to purchase paper Series EE or Series I U.S. Savings Bonds. To purchase electronic savings bonds and marketable securities, visit www.treasurydirect.gov

Please follow the instructions below to order paper savings bonds. Once you've completed all required fields, click "Continue" to print:
• A copy of your order form(s)
• Payment and mailing instructions which include an order summary to keep for your records
Instructions for
https://www.savingsbondsdirect.gov/otc/bondOrder.html
The instructions are to mail it t the FRB of Minneapolis. Can it be mailed to the Pittsburgh Branch?
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