I Bonds Mega Thread (I Bond Heads Rejoice!)

[ehh]

I checked my TD account today and found that all 92 I-bonds have been converted, all showing conversion date of 07/02/24. …

You may already be aware of this… I-Bonds in your conversion account can be transferred to your main account. You can also change the registration (for example, add/change a secondary owner or beneficiary) and grant view/transact rights to a secondary owner/beneficiary. If not transferred, check both the main and conversion accounts for annual Form 1099s.

And, Harry Sit figured out how to split an existing electronic I-Bond. Handy, for example, if you have one electronic bond but want to leave half to each of two beneficiaries.

https://thefinancebuff.com/split-saving ... aries.html

How do you split your existing $10,000 bond into two $5,000 bonds and name a different child as the second owner or beneficiary for each half?

There’s no direct way to do this in TreasuryDirect, but I figured out an indirect way.

Depending on the number of beneficiaries and the number of bonds, can be tedious. But I can confirm Mr. Sit's technique does work.

Would be nice if TreasuryDirect allowed you to establish beneficiaries at the account level. But it doesn't. Maybe someday . . . .

[Broken Man 1999]

I checked my TD account today and found that all 92 I-bonds have been converted, all showing conversion date of 07/02/24. …

You may already be aware of this… I-Bonds in your conversion account can be transferred to your main account. You can also change the registration (for example, add/change a secondary owner or beneficiary) and grant view/transact rights to a secondary owner/beneficiary. If not transferred, check both the main and conversion accounts for annual Form 1099s.

Thanks!

The ability to do some of those things easily is one of the reasons for converting them. That, plus the ever dwindling number of banks that will redeem them.

Now all I have to do is figure out a way to keep them as long as possible, but with an eye to a large tax bill looming for the deferred interest.

Broken Man 1999

[Iorek]

After several years of procrastination, I completed my first manifest to convert about one-half of my paper I-Bonds to electronic format at Treasury Direct.

I was a bit concerned about my conversion account, as it has been sitting empty for several years. But, no worries, everything seems to be fine.

I'll mail the manifest and 46 bonds tomorrow.

Fingers crossed......

Broken Man 1999

A few suggestions for your consideration:
Photograph the bonds prior to mailing
Copies made.
Photograph the manifest prior to mailing
Copies made.
Mail certified mail with return receipt requested.
Will mail with tracking and receipt.
We do this with our mailings. Peace of mind.

Best of luck.

Thanks!
Broken Man 1999

I have mailed two manifests listing a total of 92 I-bonds to Treasury Direct, both manifests have been received (6/1 and 6/5), and now the wait begins. When TD's activities are completed, I'll post the date(s).

My Conversion Account has sat empty since being established on May 23, 2006. I have never been one to rush into things.

I checked my TD account today and found that all 92 I-bonds have been converted, all showing conversion date of 07/02/24.

I had received this form email for each of the two manifests I had sent in about a week after I sent them:

Dear Customer,

This is a system generated email to communicate we received your Savings
Bonds/Treasury Marketable Securities materials.

Cases are worked in the order they are received in our office. Your request is important to us and will receive attention as soon as possible. Please be aware of our estimated processing times to process your case which are based on the case type:

Cases requesting to cash Series EE and/or Series I paper savings bonds held in your name, at least 4 weeks.
Cases requesting to cash Series HH savings bonds held in your name, at least 3 months.
Unlocking your TreasuryDirect account, updating bank information in that account, or converting your paper savings bonds into electronic bonds in TreasuryDirect, at least 4 weeks.
Claims for missing, lost, or stolen bonds, at least 6 months.
All other cases, at least 20 weeks.
If we require additional information to process your case, we will contact you. Thank you for your patience.

Please retain the Customer Number and Case Number referenced above to streamline any future actions associated with this request. Also note, you may receive multiple email notifications and Case Numbers depending on the type of transaction(s) you have requested.

If you have additional questions, please use the Contact Us link on TreasuryDirect.gov.

We appreciate your interest in U.S. Treasury securities.

Sincerely,
Treasury Services

So, hats off for TD for a conversion well done, and right at the time interval stated in the email.

Broken Man 1999

Thanks for posting this. I had sent in a manifest in May and never received an email acknowledgment but I just checked and my bonds have also been converted (and now moved into my main TD account). They seem to have eliminated a lot of their backlog/processing time.

Personally this seems like a pretty reasonable turnaround time to me, although I can see how in certain situations people might want a much quicker turnaround. However most redemptions are electronic which are quite fast. It hardly seems fair to insist on paper bonds and to insist on short turnaround times for processing them (again recognizing that in some situations the person redeeming was not the person who purchased them or and may not even had access to them before redemption).

[AlwaysLearningMore]

Harry Sit posted so much useful, practical information on I Bonds. Grateful to have had it as a reference when I converted my tax refund paper to electronic bonds.

Thank you, Mr. Sit!

[Broken Man 1999]

A few suggestions for your consideration:
Photograph the bonds prior to mailing
Copies made.
Photograph the manifest prior to mailing
Copies made.
Mail certified mail with return receipt requested.
Will mail with tracking and receipt.
We do this with our mailings. Peace of mind.

Best of luck.

Thanks!
Broken Man 1999

I have mailed two manifests listing a total of 92 I-bonds to Treasury Direct, both manifests have been received (6/1 and 6/5), and now the wait begins. When TD's activities are completed, I'll post the date(s).

My Conversion Account has sat empty since being established on May 23, 2006. I have never been one to rush into things.

I checked my TD account today and found that all 92 I-bonds have been converted, all showing conversion date of 07/02/24.

I had received this form email for each of the two manifests I had sent in about a week after I sent them:

Dear Customer,

This is a system generated email to communicate we received your Savings
Bonds/Treasury Marketable Securities materials.

Cases are worked in the order they are received in our office. Your request is important to us and will receive attention as soon as possible. Please be aware of our estimated processing times to process your case which are based on the case type:

Cases requesting to cash Series EE and/or Series I paper savings bonds held in your name, at least 4 weeks.
Cases requesting to cash Series HH savings bonds held in your name, at least 3 months.
Unlocking your TreasuryDirect account, updating bank information in that account, or converting your paper savings bonds into electronic bonds in TreasuryDirect, at least 4 weeks.
Claims for missing, lost, or stolen bonds, at least 6 months.
All other cases, at least 20 weeks.
If we require additional information to process your case, we will contact you. Thank you for your patience.

Please retain the Customer Number and Case Number referenced above to streamline any future actions associated with this request. Also note, you may receive multiple email notifications and Case Numbers depending on the type of transaction(s) you have requested.

If you have additional questions, please use the Contact Us link on TreasuryDirect.gov.

We appreciate your interest in U.S. Treasury securities.

Sincerely,
Treasury Services

So, hats off for TD for a conversion well done, and right at the time interval stated in the email.

Broken Man 1999

Thanks for posting this. I had sent in a manifest in May and never received an email acknowledgment but I just checked and my bonds have also been converted (and now moved into my main TD account). They seem to have eliminated a lot of their backlog/processing time.

Personally this seems like a pretty reasonable turnaround time to me, although I can see how in certain situations people might want a much quicker turnaround. However most redemptions are electronic which are quite fast. It hardly seems fair to insist on paper bonds and to insist on short turnaround times for processing them (again recognizing that in some situations the person redeeming was not the person who purchased them or and may not even had access to them before redemption).

Heh, can you imagine if Treasury Direct started closing out paper savings bonds and requiring converting those bonds outstanding to electronic bonds? Or start charging for paper bonds?

That would probably create a fight similar to Vanguard's transition of mutual fund accounts to brokerage accounts. It would make sense just pick a hard date to have a paper bond either redeemed, or converted. I wonder how many employees are in the TD program. Once a bond is converted, far less hands-on activities, I would think. Of course converting savings bonds would not affect the other TD bond activities, though I think the group handling savings bonds would see headcount reduced, or reassignments to another areas of Treasury Direct.

But, this is a government program, and any government program seems to have more lives than a cat.

Broken Man 1999

[JayhawkGolfer]

I was able to cash out today and get a redemption date of August 1st for the majority of my iBonds. It calculated the additional interest and the value of my holdings increased to the proper August values.

The only one that would not let me redeem were the bonds I purchased on Aug 1, 2023. I’ll check tomorrow and Thursday on those.

The process seems to be super smooth - this is my first attempt at redemption.

[hkcj]

So- having accidentally delivered a gift I-Bond to an account that already purchased this year (just $10k in both cases - the purchase and gift) - do they normally claw these back? I was expecting it to reject something that wasn't allowed so I just clicked "deliver".

I wouldn't mind them throwing them back in the gift box, I have no intention of buying more any time soon.

[epoche]

So- having accidentally delivered a gift I-Bond to an account that already purchased this year (just $10k in both cases - the purchase and gift) - do they normally claw these back? I was expecting it to reject something that wasn't allowed so I just clicked "deliver".

I wouldn't mind them throwing them back in the gift box, I have no intention of buying more any time soon.

This transaction is almost certainly allowable, based on the somewhat convoluted codes and on other reported experience. People may argue about it, but post back if you get a "nasty-gram" or other notice.
Most likely you'll hear nothing.

[protagonist]

I cashed in almost $300K of old, low-yielding I-bonds between late 2022 and 2023, basically liquidating everything by early 2024. I used the proceeds to help fund my TIPS ladder.
I did buy $20K of new I-bonds at 1.3% fixed in late 2023 when TIPS yields had fallen to, if my memory serves me well, about 1.6 or 1.7%, and I-bonds looked more desirable.
If TIPS yields remain at least 0.5-0.7% better than I-bond fixed rates, I may sell those after my first year is up and accept the 3 month interest penalty, using the proceeds to bulk up my TIPS ladder...I don't know. If for no other reason, just to simplify my life and that of my heirs.

[hkcj]

So- having accidentally delivered a gift I-Bond to an account that already purchased this year (just $10k in both cases - the purchase and gift) - do they normally claw these back? I was expecting it to reject something that wasn't allowed so I just clicked "deliver".

I wouldn't mind them throwing them back in the gift box, I have no intention of buying more any time soon.

This transaction is almost certainly allowable, based on the somewhat convoluted codes and on other reported experience. People may argue about it, but post back if you get a "nasty-gram" or other notice.
Most likely you'll hear nothing.

Very helpful, thanks. I will report back if I get any notice.

[Sho]

I got my money back next day( redeeming I bonds ) . Very efficient

[Fru Gal]

I filed an automatic extension in April for $4000 for around $3500 tax bill. Is it possible to make a $3500 payment on IRS Direct Pay with 1040 payment, and then file a refund request for the $4000 in I-bonds?

You can overpay and then request refund as I bonds.

As far as filing for extension then making a 1040 payment I’m not sure. I think you could make a second payment with extension and that would be kosher

Thanks! Unfortunately the IRS's payment portal and direct pay credit card processors don't seem to accept extension payments after the deadline. I'm not seeing other options besides 1040 payment.

Just reporting back in case it helps anyone else...this worked for me with a 1040 over-payment on IRS Direct Pay in July after having filed an extension in April. I filed my 1040 form a few days after making a 1040 over-payment. I put the total paid (extension + 1040 payment) under "Amount paid with request for extension to file". Just received my refund in I-bonds.

[delrinson]

It's been a while since I visited this thread. Looking back on my purchasing frenzy in 2022, I'm trying to figure out if I have any regrets.

Using the gift box, my wife and I purchased a total of $120,000 in I bonds in a short span of time, pushing our last gifts out to 2026. All in all, a decent blended rate of return in a vehicle that's as safe as safe can be.

But the Berkshire we sold at 350/share (no tax liability) to fund some of those purchases now trades around 440. But of course Berkshire could have a significant short term drop at any time.

More significantly, with I Bond rates trending below 3% and money market rates still above 5%, it does make me wonder.

Anyway, it's been a fun ride. Probably bought a bit more than we should have. Mild regret at most.

[MikeG62]

It's been a while since I visited this thread. Looking back on my purchasing frenzy in 2022, I'm trying to figure out if I have any regrets.

Using the gift box, my wife and I purchased a total of $120,000 in I bonds in a short span of time, pushing our last gifts out to 2026. All in all, a decent blended rate of return in a vehicle that's as safe as safe can be.
wonder.

Anyway, it's been a fun ride. Probably bought a bit more than we should have. Mild regret at most.

My wife and I did the same thing in April of 2022. We bought a total of $60,000 in iBonds using the gift box for gifts going out to 2024. Knew what the rates would be through April 2023 and felt pretty confident rates would remain compelling through Sept of 2023. Beyond that it was a crap shoot.

We completed the 2023 gifts in early 2023 and the 2024 gifts on 1/2/24. Once we knew the new rates effective beginning Oct 2023, we made the decision we would sell all these bonds on January 2, 2024 as the 3 month clawback was pretty small.

I think our blended return over the ~21 months was over 7%.

[SnowBog]

It's been a while since I visited this thread. Looking back on my purchasing frenzy in 2022, I'm trying to figure out if I have any regrets.

Using the gift box, my wife and I purchased a total of $120,000 in I bonds in a short span of time, pushing our last gifts out to 2026. All in all, a decent blended rate of return in a vehicle that's as safe as safe can be.

But the Berkshire we sold at 350/share (no tax liability) to fund some of those purchases now trades around 440. But of course Berkshire could have a significant short term drop at any time.

More significantly, with I Bond rates trending below 3% and money market rates still above 5%, it does make me wonder.

Anyway, it's been a fun ride. Probably bought a bit more than we should have. Mild regret at most.

For my two cents, regrets depends on your long term plan...

If you bought a bunch of I Bonds because of the temporarily high rate, especially as you locked up some of that money for 6 years (assuming 6 x $10k bonds per each spouse), you'll likely regret it more if rates stay low and you could have had better outcomes in something else (assuming of course we don't have another massive inflation spike in the mean time). You were potentially chasing high rates, and locked in many years of what wasn't committed to stay high rates...

Personally, I'm committed to the role of I Bonds (and EE Bonds) in our portfolio, mostly to build a DIY annuity like "bridge" for income between planned retirement and delayed retirement income (social security/pensions). I was buying Savings Bonds before their rates spiked, I'm still buying them now, plan to continue to buy them until we retire. In fact, buying "extra" via living trusts and gift boxes (although not 6 years out, but plan is to have a few years extra at retirement to "gift" after retirement).

I understand what I Bonds do - which is essentially preserve my buying power (minus taxes + any "fixed" rate if applicable). For this part of my portfolio - it doesn't matter if inflation is high or low - with I Bonds, I don't care. Now, the rest of my portfolio - cares a lot more... My Long Term Treasuries still look ugly at the moment...

[AlwaysLearningMore]

It's been a while since I visited this thread. Looking back on my purchasing frenzy in 2022, I'm trying to figure out if I have any regrets.

Using the gift box, my wife and I purchased a total of $120,000 in I bonds in a short span of time, pushing our last gifts out to 2026. All in all, a decent blended rate of return in a vehicle that's as safe as safe can be.

But the Berkshire we sold at 350/share (no tax liability) to fund some of those purchases now trades around 440. But of course Berkshire could have a significant short term drop at any time.

More significantly, with I Bond rates trending below 3% and money market rates still above 5%, it does make me wonder.

Anyway, it's been a fun ride. Probably bought a bit more than we should have. Mild regret at most.

For my two cents, regrets depends on your long term plan...

If you bought a bunch of I Bonds because of the temporarily high rate, especially as you locked up some of that money for 6 years (assuming 6 x $10k bonds per each spouse), you'll likely regret it more if rates stay low and you could have had better outcomes in something else (assuming of course we don't have another massive inflation spike in the mean time). You were potentially chasing high rates, and locked in many years of what wasn't committed to stay high rates...

Personally, I'm committed to the role of I Bonds (and EE Bonds) in our portfolio, mostly to build a DIY annuity like "bridge" for income between planned retirement and delayed retirement income (social security/pensions). I was buying Savings Bonds before their rates spiked, I'm still buying them now, plan to continue to buy them until we retire. In fact, buying "extra" via living trusts and gift boxes (although not 6 years out, but plan is to have a few years extra at retirement to "gift" after retirement).

I understand what I Bonds do - which is essentially preserve my buying power (minus taxes + any "fixed" rate if applicable). For this part of my portfolio - it doesn't matter if inflation is high or low - with I Bonds, I don't care. Now, the rest of my portfolio - cares a lot more... My Long Term Treasuries still look ugly at the moment...

Thank you for bringing up the point that these are meant to be long-term investments, thus the penalties for early redemption.

[Tarkus]

I keep seeing posts claiming that you can buy I Bonds in the name of "your kids under age 18".

My daughter turned 18 last year, and this year I was still able to buy I Bonds for her this year.

Aren't you able to buy I Bonds for anyone as a gift, regardless of their age?

[tj]

I keep seeing posts claiming that you can buy I Bonds in the name of "your kids under age 18".

My daughter turned 18 last year, and this year I was still able to buy I Bonds for her this year.

Aren't you able to buy I Bonds for anyone as a gift, regardless of their age?

Of course.

[SnowBog]

I keep seeing posts claiming that you can buy I Bonds in the name of "your kids under age 18".

My daughter turned 18 last year, and this year I was still able to buy I Bonds for her this year.

Aren't you able to buy I Bonds for anyone as a gift, regardless of their age?

Of course.

To your question - as noted - of course you can buy "gifts" for anyone you want...

Presumably the comment about "buying for kids under 18" was related to doing so in a minor linked account - aka not as a "gift." https://www.treasurydirect.gov/indiv/he ... e/141-150/

As to whether you should do either of these or not... Recommend reading: https://thefinancebuff.com/buy-i-bonds-kids-name.html

[Irene]

I think it's just that you can set up an account for your minor child yourself, which you are not supposed to do for another adult without their permission.

[Da5id]

Well seems the US mail ate the I-bond I sent in for conversion. 4 months later it hasn't shown up in my converted bonds. I called Treasury Direct today, got right thru and was told I need to get form 1048 for missing bonds, fill it out, and get it notarized. Kinda a hassle, but could be worse I guess.

Just a reminder to photocopy your paper bonds if you are mailing them in to get converted, it makes things easier.

[AlwaysLearningMore]

Well seems the US mail ate the I-bond I sent in for conversion. 4 months later it hasn't shown up in my converted bonds. I called Treasury Direct today, got right thru and was told I need to get form 1048 for missing bonds, fill it out, and get it notarized. Kinda a hassle, but could be worse I guess.

Just a reminder to photocopy your paper bonds if you are mailing them in to get converted, it makes things easier.

+1 for photocopying before mailing in.

We also mail in paper bonds via USPS certified mail, return receipt. Not that the technique is foolproof.

[jj]

https://www.treasurydirect.gov/research ... x-feature/

From 1/1/2025 you will no longer be able to buy paper I bonds with your tax return.

This means that the 'extra' $5,000 per year/per tax return goes away.

[Agitated_Analyst]

https://www.treasurydirect.gov/research ... x-feature/

From 1/1/2025 you will no longer be able to buy paper I bonds with your tax return.

This means that the 'extra' $5,000 per year/per tax return goes away.

Thanks for the heads up. I wish they had increased the electronic contribution limit. I guess that was too much to ask.

[jj]

Thanks for the heads up. I wish they had increased the electronic contribution limit. I guess that was too much to ask.

I agree, it will be interesting to see if they do increase the limit now, it would be good to see the annual limit increase with inflation.

[N.Y.Cab]

It’s good that they end the program at 1.3% fixed rate. Prior ones with .5% and below should all be redeemed by now.

[leland]

Pity, but one less item on the to do list around tax time. I liked it as an extra excuse to hit some minimum spend requirements on credit cards - felt better to pay the fee to throw it into an I Bond (even if wholly irrational).

[CletusCaddy]

It's been a while since I visited this thread. Looking back on my purchasing frenzy in 2022, I'm trying to figure out if I have any regrets.

Using the gift box, my wife and I purchased a total of $120,000 in I bonds in a short span of time, pushing our last gifts out to 2026. All in all, a decent blended rate of return in a vehicle that's as safe as safe can be.

But the Berkshire we sold at 350/share (no tax liability) to fund some of those purchases now trades around 440. But of course Berkshire could have a significant short term drop at any time.

More significantly, with I Bond rates trending below 3% and money market rates still above 5%, it does make me wonder.

Anyway, it's been a fun ride. Probably bought a bit more than we should have. Mild regret at most.

For my two cents, regrets depends on your long term plan...

If you bought a bunch of I Bonds because of the temporarily high rate, especially as you locked up some of that money for 6 years (assuming 6 x $10k bonds per each spouse), you'll likely regret it more if rates stay low and you could have had better outcomes in something else (assuming of course we don't have another massive inflation spike in the mean time). You were potentially chasing high rates, and locked in many years of what wasn't committed to stay high rates...

Personally, I'm committed to the role of I Bonds (and EE Bonds) in our portfolio, mostly to build a DIY annuity like "bridge" for income between planned retirement and delayed retirement income (social security/pensions). I was buying Savings Bonds before their rates spiked, I'm still buying them now, plan to continue to buy them until we retire. In fact, buying "extra" via living trusts and gift boxes (although not 6 years out, but plan is to have a few years extra at retirement to "gift" after retirement).

I understand what I Bonds do - which is essentially preserve my buying power (minus taxes + any "fixed" rate if applicable). For this part of my portfolio - it doesn't matter if inflation is high or low - with I Bonds, I don't care. Now, the rest of my portfolio - cares a lot more... My Long Term Treasuries still look ugly at the moment...

I am one of these short term rate chasers. I am cashing out $100k worth of 0% fixed rate I bonds next week and putting it all into 10 year 6.15% MYGA.

Even with the penalty and early taxation I can’t conceive of a scenario where the MYGA won’t win out.

[Hot Sauce]

Boglefriends-

Earlier this year, spouse and I each purchased an extra 10K of series I bonds for each other in gift boxes, to be delivered in a future year (when the fixed rate is lower). Let’s assume that occurs in 2025.

What is the strategy surrounding when within the year to officially open our gift boxes?

—Jan. 1?
—Wait until the May 1 announcement (to be sure fixed rate is lower)?
—Wait until the Nov 1 announcement (to be sure fixed rate is lower)?
—Dec. 30?
—Other? (Please specify when and why)
—It doesn’t matter, there is no strategy?

[Mel Lindauer]

https://www.treasurydirect.gov/research ... x-feature/

From 1/1/2025 you will no longer be able to buy paper I bonds with your tax return.

This means that the 'extra' $5,000 per year/per tax return goes away.

Sounds like they finally used up all of the paper I Bonds that they had printed up.

[alpenglow]

[Thread merged into here --admin LadyGeek]

I never used this option, but I'm sure that some here will be disappointed.
https://tipswatch.com/2024/09/01/treasu ... ax-refund/

[HomeStretch]

Thanks for the post as I have used this refund option and was not aware that it had been eliminated completely.

[Tom_T]

https://bogleheads.org/forum/viewtopic. ... start=7000

[Jack FFR1846]

It's sad to hear that paper bonds are ending. I've noted before that when my dad passed, he had left a $50 electronic bond for each of my kids. After my mom sent in all documentation, nothing happened. We spent 8 hours on the phone with TD to get this settled. We cashed these as we never wanted to deal with TD again. My own, nearly $500k in paper bonds are perfect for us. All have 2 names as owners. Coming up, we're thinking of giving some with our kids' names (and one parent) to them for their birthday. That allows them to cash at their income tax rate which is a bracket or 2 below ours. When any of us cash them, it's a 5 mile drive to our credit union and at the teller window, the cash is in our account before we turn around to walk out.

[coachd50]

It's sad to hear that paper bonds are ending. I've noted before that when my dad passed, he had left a $50 electronic bond for each of my kids. After my mom sent in all documentation, nothing happened. We spent 8 hours on the phone with TD to get this settled. We cashed these as we never wanted to deal with TD again. My own, nearly $500k in paper bonds are perfect for us. All have 2 names as owners. Coming up, we're thinking of giving some with our kids' names (and one parent) to them for their birthday. That allows them to cash at their income tax rate which is a bracket or 2 below ours. When any of us cash them, it's a 5 mile drive to our credit union and at the teller window, the cash is in our account before we turn around to walk out.

Fingers crossed that the service will still be available for you when you need/want it.

[alluringreality]

What is the strategy surrounding when within the year to officially open our gift boxes?

Personally I'm not coming up with items that particularly stick out for a strategy. If you're waiting to buy, for the opportunity of a higher rate, that future buy could presumably instead be a gift. I'm personally not following what exactly the timing plan intends to accomplish. If you deliver the gift, and rates happen to rise higher, resulting in a new gift, it generally seems like mostly a wash to me. Both scenarios include value in the gift box, so ability to redeem in the first year appears the main difference to me, which favors gift delivery.

[jj]

Boglefriends-

Earlier this year, spouse and I each purchased an extra 10K of series I bonds for each other in gift boxes, to be delivered in a future year (when the fixed rate is lower). Let’s assume that occurs in 2025.

What is the strategy surrounding when within the year to officially open our gift boxes?

—Jan. 1?
—Wait until the May 1 announcement (to be sure fixed rate is lower)?
—Wait until the Nov 1 announcement (to be sure fixed rate is lower)?
—Dec. 30?
—Other? (Please specify when and why)
—It doesn’t matter, there is no strategy?

Assuming that your strategy with the gift box is to keep the bonds for the long term, then if at any time during 2025 there is an increase in the fixed rate above the current 1.3%, you may want to take advantage of that by buying more. If you have already 'used' your $10k I bond allowance for 2025 by giving the gift to your spouse, then you could just buy more in the gift box. They could then sit there until 2026, or later. I bonds can't be redeemed in the first 12 months anyway, (excepting extenuating disaster circumstances) so there's no harm in them sitting in that gift box.

To answer your question more directly there is no advantage to moving the I bonds early unless you want to redeem them.

You will want to move the gift bonds during 2025 if you haven't purchased any others so that you take advantage of the $10k per calendar year limit. That limit is 'use it, or lose it'.

I'm sure my family's circumstances are different from yours but we have 6 years' I bonds currently sitting in our respective gift boxes. I move a tranche over in early January so that the task is not forgotten about. I took advantage of the higher 1.3% rate to lock that in for the next 6 years.

[LadyGeek]

I merged alpenglow's thread into the ongoing discussion.

(Thanks to the member who reported the post and explained what's wrong.)

[alpenglow]

I merged alpenglow's thread into the ongoing discussion.

(Thanks to the member who reported the post and explained what's wrong.)

I was a little late on that one - sorry about that. Poor searching on my part this morning.

[Mike Scott]

[Merged into existing discussion - moderator oldcomputerguy]

No more paper I Bonds
https://www.treasurydirect.gov/research ... x-feature/

[jebmke]

I think there are multiple threads already on this.

[cruger]

[Merged into existing discussion - moderator oldcomputerguy]

https://tipswatch.com/2024/09/01/treasu ... ax-refund/

[LadyGeek]

cruger - Your post title says "Help fight this". It's a done deal. This forum isn't the place for changing agency policy. If you have further questions about this, please PM me. Don't post them here.

The press release is here: Using Your Income Tax Refund to Buy Paper Savings Bonds — TreasuryDirect

[Lyrrad]

I opened a lot of revokable trusts to have the option to buy as much I and EE bonds as I want. As far as I can tell, the Treasury lets you buy $10K per trust per type of savings bond per year and allows an account to receive an unlimited amount of savings bonds from another as long as it hasn’t purchased any that year. There doesn’t seem to be a limit on the number of trusts either. Hopefully this continues.

With the limits and restrictions on paper bond redemptions at banks, and an expectation that the situation would get worse over time, I converted all mine to electronic last year to cash them in.

[well9boy9]

I opened a lot of revokable trusts to have the option to buy as much I and EE bonds as I want. As far as I can tell, the Treasury lets you buy $10K per trust per type of savings bond per year and allows an account to receive an unlimited amount of savings bonds from another as long as it hasn’t purchased any that year. There doesn’t seem to be a limit on the number of trusts either. Hopefully this continues.

I don't think trust can gift each other. What do you mean by receiving savings bond?

[Lyrrad]

I don't think trust can gift each other. What do you mean by receiving savings bond?

It looks like you can transfer between a personal and revocable trust account in either direction.

As long as the receiving account hasn’t (and will not) purchased any of that type of savings bond in that calendar year, it does not appear that purchase limits have been enforced on that account. I believe this also happens with the Gift box.

[well9boy9]

I don't think trust can gift each other. What do you mean by receiving savings bond?

It looks like you can transfer between a personal and revocable trust account in either direction.

As long as the receiving account hasn’t (and will not) purchased any of that type of savings bond in that calendar year, it does not appear that purchase limits have been enforced on that account. I believe this also happens with the Gift box.

Thanks.

Dug around and found this. Seems a bit complicated though.
viewtopic.php?t=310012

[need403bhelp]

Thinking about gift box strategy for October.

We have $140k in I bonds that is meant as a second or third line emergency fund. Only $20k of those are at 1.3% fixed rate.

Gains on the $120k are about $24k. We are in 24% tax bracket with 3.8% NIIT.

Thinking of buying $10k in our annual allotment each in October and $30k each in gift boxes.

Question is how many of the other I bonds to cash out. One option is all, although the tax hit would be $6,672 or so.

About $45,000 of the I bonds would be post-5 years, rest would also have a 3 month penalty.

Thoughts?

[LuvBogle]

Let’s see…the poster is concerned about ibond redemption/purchases this year with 2024 taxable income for two for the stated/his bracket equates to over $200k taxable income. Don’t worry about petty cash

[need403bhelp]

Let’s see…the poster is concerned about ibond redemption/purchases this year with 2024 taxable income for two for the stated/his bracket equates to over $200k taxable income. Don’t worry about petty cash

Ok fair enough. Thanks!