treasurydirect conversion account transfer question

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tibbitts
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treasurydirect conversion account transfer question

Post by tibbitts » Thu Sep 01, 2016 8:56 pm

After less than two months, TD converted all my paper EE and I-bonds to electronic. Now, they're all in a conversion account, and I want to move them to my regular non-conversion TD account. It seems that the way to do this is to access the conversion account, select "transfer securities", and enter my ssn and regular TD account number. I'm just looking for confirmation that that's the correct mechanism for moving the bonds to the regular account (where they can be redeemed eventually), and won't trigger taxes the way transferring normally (to another ssn) would. Also, are beneficiaries preserved across the transfer when the ssn stays the same, or do beneficiaries have to be reset?

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Phineas J. Whoopee
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Re: treasurydirect conversion account transfer question

Post by Phineas J. Whoopee » Thu Sep 01, 2016 10:19 pm

Incorrect information indicated by strikethrough.

You can't move them, at present, but you can redeem them individually where they are, and even partially as long as both the redemption amount and the remaining value are at least $25.

Transferring refers to moving marketable securities, which savings bonds aren't, between Treasury Direct and brokerage accounts.


PJW
Last edited by Phineas J. Whoopee on Fri Sep 02, 2016 3:44 pm, edited 1 time in total.

JamesSF
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Re: treasurydirect conversion account transfer question

Post by JamesSF » Thu Sep 01, 2016 10:33 pm

I did this recently, and what you described worked. The savings bonds moved from the TD conversion account into my TD main account, and it was immediate.

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Phineas J. Whoopee
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Re: treasurydirect conversion account transfer question

Post by Phineas J. Whoopee » Thu Sep 01, 2016 10:42 pm

JamesSF wrote:I did this recently, and what you described worked. The savings bonds moved from the TD conversion account into my TD main account, and it was immediate.

Really? Maybe I'm wrong, then, about what transferring means at TD.
PJW

rgs92
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Re: treasurydirect conversion account transfer question

Post by rgs92 » Thu Sep 01, 2016 11:26 pm

How difficult was this to do? (Converting paper savings bonds to an electronic version.)
Could you describe the process briefly if you have the time? Thanks for the favor.

It seemed like Treasury Direct wanted you to jump through hoops when I read about it like getting things notarized and sending things by certified mail and more. If you have a large stack of bonds, this can be a pain. I was hoping you could just give them the serial #s and mail in the bonds, but it seemed a lot more complicated when I looked at it some time ago.

Whakamole
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Re: treasurydirect conversion account transfer question

Post by Whakamole » Thu Sep 01, 2016 11:40 pm

tibbitts wrote:After less than two months, TD converted all my paper EE and I-bonds to electronic. Now, they're all in a conversion account, and I want to move them to my regular non-conversion TD account. It seems that the way to do this is to access the conversion account, select "transfer securities", and enter my ssn and regular TD account number. I'm just looking for confirmation that that's the correct mechanism for moving the bonds to the regular account (where they can be redeemed eventually), and won't trigger taxes the way transferring normally (to another ssn) would. Also, are beneficiaries preserved across the transfer when the ssn stays the same, or do beneficiaries have to be reset?


I just followed these instructions and it worked perfectly.

tibbitts
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Re: treasurydirect conversion account transfer question

Post by tibbitts » Thu Sep 01, 2016 11:41 pm

rgs92 wrote:How difficult was this to do? (Converting paper savings bonds to an electronic version.)
Could you describe the process briefly if you have the time? Thanks for the favor.

It seemed like Treasury Direct wanted you to jump through hoops when I read about it like getting things notarized and sending things by certified mail and more. If you have a large stack of bonds, this can be a pain. I was hoping you could just give them the serial #s and mail in the bonds, but it seemed a lot more complicated when I looked at it some time ago.

It was simple for me, and the only unusual requirement was because a small number of the bonds were POD to me, so I had to send an original death certificate with them, which seems only reasonable. I sent 129 bonds in one package via Fedex Ground for about $10, but you can send via any means you choose. You have to first log on and fill out manifests (only up to 50 bonds per manifest, I think) and you do have to enter all the serial numbers at that time. You print the manifest(s) to send with the bonds.

tibbitts
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Re: treasurydirect conversion account transfer question

Post by tibbitts » Thu Sep 01, 2016 11:50 pm

I received this upon asking TD this question:

==

Click the ManageDirect tab at the top of the page.
Under the heading Manage My Securities, click "Transfer securities".
On the Transfer page, choose the button beside the security type you want to transfer and click "Submit".
On the Summary page, choose the box beside the securities that you want to transfer and click "Submit".
From here, the process differs slightly depending on whether you have selected one or more than one security for transfer:
If more than one security was selected for transfer, you will see the Multiple Transfer Request page. If transferring more than one security, the full amount must be transferred.
If only one security was selected for transfer, you will see the Transfer Request page. On this page, either leave the default button selected for Transfer full amount or select the button for Transfer partial amount and enter the desired amount. In a partial transfer of savings bonds, you must transfer at least $25 and leave a value of at least $25 in the security.
Enter the recipient's taxpayer identification number and TreasuryDirect account number in the spaces provided and click "Submit".
To protect the security of your investments, in certain instances, a page will display with a link to a Transfer Request (FS Form 5511) needed to complete your transaction. In this case, you must complete the paper form according to its instructions and mail it to us for processing. The form must be signed in the presence of an authorized certifying official at a financial institution. (Certification by a Notary Public is not acceptable.)
If a paper form is not required, the Transfer Review page or Multiple Transfer Review page will be displayed. If any information needs to be changed, click "Edit" and make the changes.
Read the statement at the bottom of the page and click "Submit".
The Transfer Confirmation page or Multiple Confirmation page will be displayed to verify completion of the request. You may wish to print a copy of this screen for your records.

==

Overall TD is very responsive and helpful by email and they really do an excellent job of customer service in that respect. However, I did receive an entirely incorrect reply from them once, thus the caution in asking here. My question that was answered incorrectly had been whether it's necessary to provide a social security number for a beneficiary, and they first replied no. In fact in the paper days, you didn't supply beneficiary ssns, and upon conversion, they print as 000-00-0000. But once in electronic form, there appears to be no way to either enter nothing or 000-00-0000 when creating a new registration - and TD later confirmed that that was the case, and that their first reply was wrong.

I'm now curious what might trigger the 5511 requirement, or if anyone has experienced that.

I had thought that securities should be put into the primary account eventually, but perhaps I'm wrong about that if they can be just left indefinitely in the conversion account. Because I've had TD accounts closed automatically by TD in the past due to zero balances, I'm a little concerned about having zero in my primary account indefinitely.

tibbitts
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Re: treasurydirect conversion account transfer question

Post by tibbitts » Thu Sep 01, 2016 11:51 pm

Whakamole wrote:
tibbitts wrote:After less than two months, TD converted all my paper EE and I-bonds to electronic. Now, they're all in a conversion account, and I want to move them to my regular non-conversion TD account. It seems that the way to do this is to access the conversion account, select "transfer securities", and enter my ssn and regular TD account number. I'm just looking for confirmation that that's the correct mechanism for moving the bonds to the regular account (where they can be redeemed eventually), and won't trigger taxes the way transferring normally (to another ssn) would. Also, are beneficiaries preserved across the transfer when the ssn stays the same, or do beneficiaries have to be reset?


I just followed these instructions and it worked perfectly.

Were your beneficiaries retained after moving the bonds to your primary account?

Whakamole
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Re: treasurydirect conversion account transfer question

Post by Whakamole » Fri Sep 02, 2016 12:08 am

tibbitts wrote:
Whakamole wrote:I just followed these instructions and it worked perfectly.

Were your beneficiaries retained after moving the bonds to your primary account?


I have my bonds held in a trust, so there's no beneficiary.

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HueyLD
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Re: treasurydirect conversion account transfer question

Post by HueyLD » Fri Sep 02, 2016 6:24 am

Tibbitts,

All your instructions are correct and you should follow the instructions to transfer them from your converted accounts to your regular account. There will be no sale (i.e. No 1099 involved) and you retain the secondary and/or beneficiary specified in the regular account.

I don't know what would trigger the filing of Form 5511. But it is no big deal as you have already mastered the forms after going thru the conversion.

Congrats.

clcarter
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Re: treasurydirect conversion account transfer question

Post by clcarter » Fri Sep 02, 2016 7:27 am

What is the reason to move bonds from the converted account to a regular account?

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HueyLD
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Re: treasurydirect conversion account transfer question

Post by HueyLD » Fri Sep 02, 2016 7:58 am

To simplify your investment.

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Phineas J. Whoopee
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Re: treasurydirect conversion account transfer question

Post by Phineas J. Whoopee » Fri Sep 02, 2016 3:47 pm

Clearly my first post in this thread is incorrect, so I've gone back and stricken through the wrong parts. All the parts, that is. Thanks for the collective correction. All of us are smarter than any one of us.
PJW

tibbitts
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Re: treasurydirect conversion account transfer question

Post by tibbitts » Fri Sep 02, 2016 9:43 pm

Thanks to everyone who replied. It sounds like it would be correct to follow the TD directions to move the bonds.

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llama
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Re: treasurydirect conversion account transfer question

Post by llama » Thu May 18, 2017 11:19 pm

Can anyone who's done this confirm that transferring bonds from my conversion account to my primary account will not count against the $10k annual purchase limit?

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HueyLD
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Re: treasurydirect conversion account transfer question

Post by HueyLD » Sun May 21, 2017 12:18 pm

llama wrote:Can anyone who's done this confirm that transferring bonds from my conversion account to my primary account will not count against the $10k annual purchase limit?

I can confirm that.

sandramjet
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Re: treasurydirect conversion account transfer question

Post by sandramjet » Mon May 22, 2017 12:48 pm

When I follow these directions, it shows a statement that says in part:
"I also certify that this transfer is for the purpose of making a gift (or in response to a final judgement....."

Is it safe to assume that moving from a conversion account to the regular account would qualify as "making a gift" to yourself?

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