I-bonds for a non US citizen

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Topic Author
aceoperations
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I-bonds for a non US citizen

Post by aceoperations »

I was considering purchasing I-bonds by the end of the year, but I am not a US citizen or a permanent resident (green card holder). Is there any regulation that prevents me from buying I-bonds? I intend to hold these bonds for at least 5 years in which time I should be able to get a green card. Thanks.
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HueyLD
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Re: I-bonds for a non US citizen

Post by HueyLD »

When I opened an account at the TD, it asked for my SSN. I don't recall any question related to either citizenship or permanent residency.

So, I assume that you can open a TD account with your SSN. Do you have a SSN?
Sam I Am
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Re: I-bonds for a non US citizen

Post by Sam I Am »

Message deleted.
Last edited by Sam I Am on Mon Oct 07, 2013 1:21 pm, edited 1 time in total.
sscritic
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Re: I-bonds for a non US citizen

Post by sscritic »

You asked about the regs.
Only an individual or an entity is eligible to open a TreasuryDirect account. In order to open a TreasuryDirect account, an individual or entity account manager must have a valid social security number (SSN), be 18 years of age or over, and be legally competent.
...
The account owner must have a United States address of record and have an account at a United States depository financial institution that will accept debits and credits using the Automated Clearing House method of payment.
...
You must establish a TreasuryDirect account online before you purchase a Treasury security to be held in your account.
..
When you have completed the application, you will create a password to access your account. We will verify your identity and send your account number to you by e-mail when your account application is approved. In addition to your password, we may require you to use any other form(s) of authentication that we consider necessary for the protection of your account.
...
(a) Individual. When you establish an account, we may use a verification service to verify your identity using information you provide about yourself on the online application. At our option, we may require offline verification.
...
In the event we require offline verification, we will provide a printable verification form for the individual account owner or entity account manager to sign. The signature on the form must be certified or guaranteed as provided at §363.43, and the form must be mailed to us at the address provided in §363.5.
P.S. Sam's link is wrong. Try here:
http://www.treasurydirect.gov/indiv/res ... s_ibuy.htm

P.P.S. The website is allowed to give false information (or perhaps it is talking about paper bonds). The regs are what count, as I understand the meaning of the word regs.
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tfb
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Re: I-bonds for a non US citizen

Post by tfb »

TreasuryDirect wrote:United States resident
"resident" just means having an address and maybe living in the country for 183 days or more in a year. It has nothing to do with citizenship or immigration status.
Last edited by tfb on Tue Nov 06, 2012 4:11 pm, edited 1 time in total.
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Sam I Am
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Re: I-bonds for a non US citizen

Post by Sam I Am »

Message deleted.
Last edited by Sam I Am on Mon Oct 07, 2013 1:19 pm, edited 1 time in total.
random user 320
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Re: I-bonds for a non US citizen

Post by random user 320 »

Sam I Am wrote:Hey, I'm not defining who is or isn't a resident, I simply posted the info I found at the Treasury Dirrect site. But thanks anyway.Sheesh!
The problem is that it matters a great deal to the OP what exactly is meant by "resident". S/He seems to qualify for the IRS definition that tfb mentions but not the USCIS definition. The clarification was likely meant to be helpful, not pedantic.
Last edited by random user 320 on Tue Nov 06, 2012 2:10 pm, edited 1 time in total.
ThinkingRunner
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Re: I-bonds for a non US citizen

Post by ThinkingRunner »

Yes, you can purchase I-bonds -- I bought paper I-bonds when on H-1B visa. As long as you have a SSN and are a "resident alien for tax purposes" (meaning you file taxes as a U.S. resident and pass either the green card test or the substantial presence test). Since you won't pass the green card test, you should check whether you pass the substantial presence test. More details in IRS form 1040NR instructions.

http://www.irs.gov/pub/irs-pdf/i1040nr.pdf

ETA: I also opened and operated bank, brokerage and Vanguard accounts (including Roth IRAs) before I became a permanent resident.
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tfb
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Re: I-bonds for a non US citizen

Post by tfb »

Sam I Am wrote:Hey, I'm not defining who is or isn't a resident, I simply posted the info I found at the Treasury Dirrect site. But thanks anyway.Sheesh!

Sam I Am
Sorry, I should've attributed the quote to TreasuryDirect, not you. I will edit my post.
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Topic Author
aceoperations
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Re: I-bonds for a non US citizen

Post by aceoperations »

Thanks for the replies everyone. Looking at "US resident" made me think it was permanent residency, while it only meant being a "resident alien for tax purposes." Since I pass the substantial presence test, I guess I can go ahead and setup my account with TreasuryDirect.
Spirit Rider
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Re: I-bonds for a non US citizen

Post by Spirit Rider »

Years ago I advised a couple of H1-B software engineers at our company to open treasury direct accounts and purchase I-bonds. The H1-B work visa only applies to the holder and not the spouse. The spouse is not eligible to work and thus cannot apply for a SSN. However, for bank accounts and spousal IRA's, the spouses applied for and received Individual Taxpayer Identification Numbers (ITIN).

They contacted Treasury Direct and were told as long as they had valid Taxpayer Identification Numbers that would allow the proper reporting of IRS tax forms, they could open an account. They applied for Treasury Direct accounts and purchased I-bonds for years. Once they applied for and received their permanent resident status the spouses could now work and recevied SSNs, which have replaced their ITINs on all their accounts.

I am guessing that you are currently here on some kind of work visa. I added the above information in case you are married and could take advantage of the additional opportunites for your spouse to also purchase I-bonds. Also, I don't know if this is still true, but it is worth a try if circumstances allow.
Topic Author
aceoperations
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Re: I-bonds for a non US citizen

Post by aceoperations »

The H1-B work visa only applies to the holder and not the spouse. The spouse is not eligible to work and thus cannot apply for a SSN.
Good point Spirit Rider. I do have a H1-B visa and my wife has a dependent H4 visa. She was working earlier and had a H1-B visa. As a result she does have an SSN. I have spousal Roth IRA set up along my Roth IRA. So, as I understand it, we should both be able to purchase $10k worth of electronic I-bonds each before the end of the year. Please let me know if I'm missing anything.
Topic Author
aceoperations
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Re: I-bonds for a non US citizen

Post by aceoperations »

I just wanted to follow up on this post so that it may be useful for others in the same situation.

Apart from all the useful information provided by others on this forum regarding this topic, I used the "contact us" link on the treasurydirect website to ask whether an SSN alone is sufficient to purchase I-bonds.

Here is my question (sent on a Saturday morning)
Hi, I currently live in the US on a H1B work visa. I am not a US citizen or a permanent resident. My spouse is on a H4 dependent visa having held a H1B work visa earlier. She is also not a US citizen or a permanent resident. However, we both have SSNs. Am I allowed to open a treasurydirect account and purchase I-series savings bonds up to the maximum limit of $10k for each of our SSNs? Thanks
Here is the response I received from treasury direct (received response on Tuesday morning):
Hello,

Who is eligible to open a TreasuryDirect account, states:

"Only an individual or an entity is eligible to open a TreasuryDirect account. In order to open a TreasuryDirect account, an individual or entity account manager must have a valid social security number (SSN), be 18 years of age or over, and be legally competent. An entity must have a valid SSN or employer identification number (EIN). The account owner must have a United States address of record and have an account at a United States depository financial institution that will accept debits and credits using the Automated Clearing House method of payment"

If you meet these requirements then you can open a TreasuryDirect account.

Thanks,
This response is a reaffirmation of the posts by others on this topic. Thank you for all your help.
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Mel Lindauer
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Re: I-bonds for a non US citizen

Post by Mel Lindauer »

aceoperations wrote:I just wanted to follow up on this post so that it may be useful for others in the same situation.

Apart from all the useful information provided by others on this forum regarding this topic, I used the "contact us" link on the treasurydirect website to ask whether an SSN alone is sufficient to purchase I-bonds.

Here is my question (sent on a Saturday morning)
Hi, I currently live in the US on a H1B work visa. I am not a US citizen or a permanent resident. My spouse is on a H4 dependent visa having held a H1B work visa earlier. She is also not a US citizen or a permanent resident. However, we both have SSNs. Am I allowed to open a treasurydirect account and purchase I-series savings bonds up to the maximum limit of $10k for each of our SSNs? Thanks
Here is the response I received from treasury direct (received response on Tuesday morning):
Hello,

Who is eligible to open a TreasuryDirect account, states:

"Only an individual or an entity is eligible to open a TreasuryDirect account. In order to open a TreasuryDirect account, an individual or entity account manager must have a valid social security number (SSN), be 18 years of age or over, and be legally competent. An entity must have a valid SSN or employer identification number (EIN). The account owner must have a United States address of record and have an account at a United States depository financial institution that will accept debits and credits using the Automated Clearing House method of payment"

If you meet these requirements then you can open a TreasuryDirect account.

Thanks,
This response is a reaffirmation of the posts by others on this topic. Thank you for all your help.
Thanks for sharing that feedback from TD. My guess is that you meet those requirements, so it sounds like you're good to go.
Best Regards - Mel | | Semper Fi
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NAVigator
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Re: I-bonds for a non US citizen

Post by NAVigator »

That is interesting information about who can open a TD account.

Here is a variation. My daughter is an expat living in Europe; she is a US citizen and has a social security number. I have purchased a number of I-Bonds in my account and named her as a co-owner. When she inherits these bonds, I think she will have to open an TD account. But it seems that she won't be able to since she doesn't have an address in the US or a financial institution, except Vanguard.

Any suggestions on what to do in this case?

Jerry
"I was born with nothing and I have most of it left."
Topic Author
aceoperations
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Re: I-bonds for a non US citizen

Post by aceoperations »

My thought on it is that she will only need to have an US address on record. It can be a family member or a trusted friend. It does not specify that the she actually has to live at that address. Of course, meeting the requirement of having an account with a US financial institution is an easy one.

To be sure, it might be useful to email TD. They have a pretty quick response time.
manedark
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Re: I-bonds for a non US citizen

Post by manedark »

Spirit Rider wrote: Wed Nov 07, 2012 11:24 am Years ago I advised a couple of H1-B software engineers at our company to open treasury direct accounts and purchase I-bonds. The H1-B work visa only applies to the holder and not the spouse. The spouse is not eligible to work and thus cannot apply for a SSN. However, for bank accounts and spousal IRA's, the spouses applied for and received Individual Taxpayer Identification Numbers (ITIN).

They contacted Treasury Direct and were told as long as they had valid Taxpayer Identification Numbers that would allow the proper reporting of IRS tax forms, they could open an account. They applied for Treasury Direct accounts and purchased I-bonds for years. Once they applied for and received their permanent resident status the spouses could now work and recevied SSNs, which have replaced their ITINs on all their accounts.

I am guessing that you are currently here on some kind of work visa. I added the above information in case you are married and could take advantage of the additional opportunites for your spouse to also purchase I-bonds. Also, I don't know if this is still true, but it is worth a try if circumstances allow.
HI, I am on a temporary work visa to the US - L1 (intra-company transfer), I was thinking of investing in I-bonds in my taxable account. My question is that if I after 30 years (full maturity) - I am no longer a US resident or citizen, can I potentially run into issues while trying to redeem these bonds as in need to have a valid SSN and/or a US bank account etc.?
Thanks in advance!
silverstar3
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Re: I-bonds for a non US citizen

Post by silverstar3 »

manedark wrote: Sun May 20, 2018 1:44 pm
Spirit Rider wrote: Wed Nov 07, 2012 11:24 am Years ago I advised a couple of H1-B software engineers at our company to open treasury direct accounts and purchase I-bonds. The H1-B work visa only applies to the holder and not the spouse. The spouse is not eligible to work and thus cannot apply for a SSN. However, for bank accounts and spousal IRA's, the spouses applied for and received Individual Taxpayer Identification Numbers (ITIN).

They contacted Treasury Direct and were told as long as they had valid Taxpayer Identification Numbers that would allow the proper reporting of IRS tax forms, they could open an account. They applied for Treasury Direct accounts and purchased I-bonds for years. Once they applied for and received their permanent resident status the spouses could now work and recevied SSNs, which have replaced their ITINs on all their accounts.

I am guessing that you are currently here on some kind of work visa. I added the above information in case you are married and could take advantage of the additional opportunites for your spouse to also purchase I-bonds. Also, I don't know if this is still true, but it is worth a try if circumstances allow.
HI, I am on a temporary work visa to the US - L1 (intra-company transfer), I was thinking of investing in I-bonds in my taxable account. My question is that if I after 30 years (full maturity) - I am no longer a US resident or citizen, can I potentially run into issues while trying to redeem these bonds as in need to have a valid SSN and/or a US bank account etc.?
Thanks in advance!
I have the same question. What if a person on visa who is eligible to purchase but later is not able to get green card and has to move out of the United States? Will they still be able to withdraw the amount at maturity or even earlier if needed? Does anyone have info on this?
investmax
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Re: I-bonds for a non US citizen

Post by investmax »

Sorry for reviving this very old thread. I was a having a question about I-bonds for a visa holder, and this thread has answered many questions.

The only unanswered question is the last one, if someone moves out of the US after a few years, having purchased the I-Bonds, is there any issues in him/ her trying to withdraw the amount.

Also considering the education related tax benefits of I-bonds, if kids are the beneficiaries, and the bonds are in the parents name.
I realize if I take the I-bonds in the name of kids, they will not get any education related tax benefits for those bonds.

Note : The parents are non-citizens who have moved out of USA, and the Kids are US citizens and beneficiaries of the bonds.
1. Will we be eligible for tax benefits if we withdraw the I-bonds for kids education reasons and kids study in the US.
2. Will we be eligible for tax benefits if we withdraw the I-bonds for kids education outside the US. Note the kids are still US citizens but pursuing education in other countries, for example in Australia.

Appreciate your advise. Thanks in advance.
investmax
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Re: I-bonds for a non US citizen

Post by investmax »

Hi Friends,

Sorry again for reviving this old thread. Any information about the questions above would be appreciated. I am a Married Filing Jointly in H1B visa (GC has been applied but will take a long time). As per IRS tax rules I am resident alien as per the substantial presence test for the calendar year (January 1-December 31).

I am planning to buy the I-bonds with my US citizen child as a beneficiary. Would there be any issues in that, and also for getting tax benefits for childs education down the line.

Thanks.
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