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Focus on all basic (i.e. non-personal) investing questions and points, investing information, and principle.
- Posts: 65
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)
How lengthy did it take so that you can get your iBonds this yr?
I’ve known as Treasure Direct twice. After a little bit of a runaround, they are saying “somebody will contact you”. To date nothing after a pair weeks.
Re: I Bonds Mega Thread (I Bond Heads Rejoice!)
cranberrycrash wrote: ↑Thu Sep 05, 2024 11:26 pm
I by no means obtained my $5K in paper iBonds after submitting my tax return in April this yr. I obtained the remainder of my tax refund shortly – deposited in my Constancy account in April. However much less the $5k.How lengthy did it take so that you can get your iBonds this yr?
I’ve known as Treasure Direct twice. After a little bit of a runaround, they are saying “somebody will contact you”. To date nothing after a pair weeks.
I’ve at all times obtained mine inside 4-6 weeks after submitting. Typically even sooner. This yr was no exception.
To be clear, did you confirm that your refund was precisely what you anticipated it to be? I had a good friend who made an error when filling out the shape to obtain $5K I-bonds and the error resulted in his last refund deposited to his checking account being $5K bigger than anticipated. And with no notification that he had made an error.
Cheers.
“Repeating a factor does not enhance it.” Quote from Inman, as performed by Jude Legislation, within the film “Chilly Mountain”
- Posts: 65
- Joined: Mon Apr 10, 2023 5:27 pm
Re: I Bonds Mega Thread (I Bond Heads Rejoice!)
dcabler wrote: ↑Fri Sep 06, 2024 6:40 amcranberrycrash wrote: ↑Thu Sep 05, 2024 11:26 pm
I by no means obtained my $5K in paper iBonds after submitting my tax return in April this yr. I obtained the remainder of my tax refund shortly – deposited in my Constancy account in April. However much less the $5k.How lengthy did it take so that you can get your iBonds this yr?
I’ve known as Treasure Direct twice. After a little bit of a runaround, they are saying “somebody will contact you”. To date nothing after a pair weeks.
I’ve at all times obtained mine inside 4-6 weeks after submitting. Typically even sooner. This yr was no exception.
To be clear, did you confirm that your refund was precisely what you anticipated it to be? I had a good friend who made an error when filling out the shape to obtain $5K I-bonds and the error resulted in his last refund deposited to his checking account being $5K bigger than anticipated. And with no notification that he had made an error.Cheers.
Yeah, as I discussed the refund deposited to my Constancy account was appropriate, and lacking the 5K I had instructed TurboTax to make use of to buy iBonds. I at all times use TurboTax to do my taxes, and for the previous a number of years plan my taxes to make use of the refund for iBonds. That is the primary yr they have not confirmed up.
Re: I Bonds Mega Thread (I Bond Heads Rejoice!)
cranberrycrash wrote: ↑Fri Sep 06, 2024 11:00 amdcabler wrote: ↑Fri Sep 06, 2024 6:40 amcranberrycrash wrote: ↑Thu Sep 05, 2024 11:26 pm
I by no means obtained my $5K in paper iBonds after submitting my tax return in April this yr. I obtained the remainder of my tax refund shortly – deposited in my Constancy account in April. However much less the $5k.How lengthy did it take so that you can get your iBonds this yr?
I’ve known as Treasure Direct twice. After a little bit of a runaround, they are saying “somebody will contact you”. To date nothing after a pair weeks.
I’ve at all times obtained mine inside 4-6 weeks after submitting. Typically even sooner. This yr was no exception.
To be clear, did you confirm that your refund was precisely what you anticipated it to be? I had a good friend who made an error when filling out the shape to obtain $5K I-bonds and the error resulted in his last refund deposited to his checking account being $5K bigger than anticipated. And with no notification that he had made an error.Cheers.
Yeah, as I discussed the refund deposited to my Constancy account was appropriate, and lacking the 5K I had instructed TurboTax to make use of to buy iBonds. I at all times use TurboTax to do my taxes, and for the previous a number of years plan my taxes to make use of the refund for iBonds. That is the primary yr they have not confirmed up.
That is unlucky – I’m wondering if contacting the IRS would assist right here to at the very least see in case your information was transferred over to TreasuryDirect.
“Repeating a factor does not enhance it.” Quote from Inman, as performed by Jude Legislation, within the film “Chilly Mountain”
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- Joined: Thu Could 28, 2015 6:25 pm
Re: I Bonds Mega Thread (I Bond Heads Rejoice!)
need403bhelp wrote: ↑Mon Sep 02, 2024 2:24 pm
Enthusiastic about present field technique for October.We now have $140k in I bonds that’s meant as a second or third line emergency fund. Solely $20k of these are at 1.3% fastened fee.
Good points on the $120k are about $24k. We’re in 24% tax bracket with 3.8% NIIT.
Considering of shopping for $10k in our annual allotment every in October and $30k every in present bins.
Query is how most of the different I bonds to money out. One choice is all, though the tax hit can be $6,672 or so.
About $45,000 of the I bonds can be post-5 years, relaxation would even have a 3 month penalty.
Ideas?
Simply wished to ask yet one more factor.
One of many issues I actually favored about I bonds is tax deferral for 30 years, however with the latest ups and downs in charges I really feel a bit just like the I bonds are not a “set it and overlook it” emergency fund. That is form of annoying and disappointing.
One choice since we now have >$250k of taxable belongings is just utilizing our bonds in retirement accounts as an emergency fund, and promoting from taxable inventory whereas rebalancing in retirement funds to take care of asset allocation if further funds are wanted.
Perhaps I bond thread is just not greatest place to ask this, however are I bonds for long run emergency fund nonetheless a great way to go as an alternative of doing one thing like above?
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- Joined: Mon Apr 10, 2023 5:27 pm
Re: I Bonds Mega Thread (I Bond Heads Rejoice!)
dcabler wrote: ↑Fri Sep 06, 2024 11:24 amcranberrycrash wrote: ↑Fri Sep 06, 2024 11:00 amdcabler wrote: ↑Fri Sep 06, 2024 6:40 amcranberrycrash wrote: ↑Thu Sep 05, 2024 11:26 pm
I by no means obtained my $5K in paper iBonds after submitting my tax return in April this yr. I obtained the remainder of my tax refund shortly – deposited in my Constancy account in April. However much less the $5k.How lengthy did it take so that you can get your iBonds this yr?
I’ve known as Treasure Direct twice. After a little bit of a runaround, they are saying “somebody will contact you”. To date nothing after a pair weeks.
I’ve at all times obtained mine inside 4-6 weeks after submitting. Typically even sooner. This yr was no exception.
To be clear, did you confirm that your refund was precisely what you anticipated it to be? I had a good friend who made an error when filling out the shape to obtain $5K I-bonds and the error resulted in his last refund deposited to his checking account being $5K bigger than anticipated. And with no notification that he had made an error.Cheers.
Yeah, as I discussed the refund deposited to my Constancy account was appropriate, and lacking the 5K I had instructed TurboTax to make use of to buy iBonds. I at all times use TurboTax to do my taxes, and for the previous a number of years plan my taxes to make use of the refund for iBonds. That is the primary yr they have not confirmed up.
That is unlucky – I’m wondering if contacting the IRS would assist right here to at the very least see in case your information was transferred over to TreasuryDirect.
Yeah, every part appears okay from the IRS finish. Treasury Direct is simply unhelpful. Referred to as once more and now they are saying they haven’t any data of an open request, so let’s begin over. “Somebody will contact you….”
Perhaps it is a good factor this program is ending.
Re: I Bonds Mega Thread (I Bond Heads Rejoice!)
cranberrycrash wrote: ↑Fri Sep 06, 2024 1:55 pmdcabler wrote: ↑Fri Sep 06, 2024 11:24 amcranberrycrash wrote: ↑Fri Sep 06, 2024 11:00 amdcabler wrote: ↑Fri Sep 06, 2024 6:40 amcranberrycrash wrote: ↑Thu Sep 05, 2024 11:26 pm
I by no means obtained my $5K in paper iBonds after submitting my tax return in April this yr. I obtained the remainder of my tax refund shortly – deposited in my Constancy account in April. However much less the $5k.How lengthy did it take so that you can get your iBonds this yr?
I’ve known as Treasure Direct twice. After a little bit of a runaround, they are saying “somebody will contact you”. To date nothing after a pair weeks.
I’ve at all times obtained mine inside 4-6 weeks after submitting. Typically even sooner. This yr was no exception.
To be clear, did you confirm that your refund was precisely what you anticipated it to be? I had a good friend who made an error when filling out the shape to obtain $5K I-bonds and the error resulted in his last refund deposited to his checking account being $5K bigger than anticipated. And with no notification that he had made an error.Cheers.
Yeah, as I discussed the refund deposited to my Constancy account was appropriate, and lacking the 5K I had instructed TurboTax to make use of to buy iBonds. I at all times use TurboTax to do my taxes, and for the previous a number of years plan my taxes to make use of the refund for iBonds. That is the primary yr they have not confirmed up.
That is unlucky – I’m wondering if contacting the IRS would assist right here to at the very least see in case your information was transferred over to TreasuryDirect.
Yeah, every part appears okay from the IRS finish. Treasury Direct is simply unhelpful. Referred to as once more and now they are saying they haven’t any data of an open request, so let’s begin over. “Somebody will contact you….”
Perhaps it is a good factor this program is ending.
Have I been asleep? Ending? Are you able to hyperlink a supply to this?
Edit: I’ve been asleep. I simply observed the notification on TD. https://www.treasurydirect.gov/research … suryDirect.
Cheers.
“Repeating a factor does not enhance it.” Quote from Inman, as performed by Jude Legislation, within the film “Chilly Mountain”
Re: I Bonds Mega Thread (I Bond Heads Rejoice!)
need403bhelp wrote: ↑Fri Sep 06, 2024 11:43 amneed403bhelp wrote: ↑Mon Sep 02, 2024 2:24 pm
Enthusiastic about present field technique for October.We now have $140k in I bonds that’s meant as a second or third line emergency fund. Solely $20k of these are at 1.3% fastened fee.
Good points on the $120k are about $24k. We’re in 24% tax bracket with 3.8% NIIT.
Considering of shopping for $10k in our annual allotment every in October and $30k every in present bins.
Query is how most of the different I bonds to money out. One choice is all, though the tax hit can be $6,672 or so.
About $45,000 of the I bonds can be post-5 years, relaxation would even have a 3 month penalty.
Ideas?
Simply wished to ask yet one more factor.
One of many issues I actually favored about I bonds is tax deferral for 30 years, however with the latest ups and downs in charges I really feel a bit just like the I bonds are not a “set it and overlook it” emergency fund. That is form of annoying and disappointing.
One choice since we now have >$250k of taxable belongings is just utilizing our bonds in retirement accounts as an emergency fund, and promoting from taxable inventory whereas rebalancing in retirement funds to take care of asset allocation if further funds are wanted.
Perhaps I bond thread is just not greatest place to ask this, however are I bonds for long run emergency fund nonetheless a great way to go as an alternative of doing one thing like above?
I’m nonetheless utilizing I-bonds as my 2nd tier EF and I’ve no intention of adjusting based mostly on brief time period rate of interest fluctuations.
Financial savings bonds don’t go down in worth. The opposite choice you talked about would give me a purpose to fret: how a lot do I’ve for emergencies at this time?
Additionally I-bonds provide tax deferred good points and are state tax free..
A lot of people appear to do the opposite technique you talked about, although. It looks as if both can work relying on specifics.
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)
Nohbdy wrote: ↑Fri Sep 06, 2024 2:54 pmneed403bhelp wrote: ↑Fri Sep 06, 2024 11:43 amneed403bhelp wrote: ↑Mon Sep 02, 2024 2:24 pm
Enthusiastic about present field technique for October.We now have $140k in I bonds that’s meant as a second or third line emergency fund. Solely $20k of these are at 1.3% fastened fee.
Good points on the $120k are about $24k. We’re in 24% tax bracket with 3.8% NIIT.
Considering of shopping for $10k in our annual allotment every in October and $30k every in present bins.
Query is how most of the different I bonds to money out. One choice is all, though the tax hit can be $6,672 or so.
About $45,000 of the I bonds can be post-5 years, relaxation would even have a 3 month penalty.
Ideas?
Simply wished to ask yet one more factor.
One of many issues I actually favored about I bonds is tax deferral for 30 years, however with the latest ups and downs in charges I really feel a bit just like the I bonds are not a “set it and overlook it” emergency fund. That is form of annoying and disappointing.
One choice since we now have >$250k of taxable belongings is just utilizing our bonds in retirement accounts as an emergency fund, and promoting from taxable inventory whereas rebalancing in retirement funds to take care of asset allocation if further funds are wanted.
Perhaps I bond thread is just not greatest place to ask this, however are I bonds for long run emergency fund nonetheless a great way to go as an alternative of doing one thing like above?
I’m nonetheless utilizing I-bonds as my 2nd tier EF and I’ve no intention of adjusting based mostly on brief time period rate of interest fluctuations.
Financial savings bonds don’t go down in worth. The opposite choice you talked about would give me a purpose to fret: how a lot do I’ve for emergencies at this time?
Additionally I-bonds provide tax deferred good points and are state tax free..
A lot of people appear to do the opposite technique you talked about, although. It looks as if both can work relying on specifics.
Thanks for sharing your ideas. No state tax for us.
I don’t actually like promoting and shopping for increased fastened fee in present field however on the similar time it’s my financial curiosity to take action if I plan to carry for 30 years (I suppose except charges truly find yourself going even increased and I’m confronted with the identical dilemma again and again).
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Re: Starting January 1, 2025, you will no longer be able to buy paper Series I savings bonds with your tax refund.
LK2012 wrote: ↑Fri Sep 06, 2024 11:50 pmProperly, rats! Thanks for the knowledge, however that may be very disappointing information. I used to be one of many apparently small quantity of people that made use of this feature a number of instances. I used to be planning to do that in 2025, however apparently that is off the desk now. I actually favored the power so as to add that further $5,000 of I Bonds to our annual stash.
How would you want so as to add $10,000 of extra I bond buying capacity? https://thefinancebuff.com/buy-more-i-b … trust.html
Re: I Bonds Mega Thread (I Bond Heads Rejoice!)
November 1st! 
Sarcasm apart, someday in October (overlook precisely when) it will likely be doable to estimate the “inflation” element with pretty excessive accuracy – as that half is clearly documented.
The unknown is the “fastened” element, as that’s not clearly documented the way it’s decided. There have been a number of working theories, and so they can often be appropriate (or shut sufficient). However it’s in the end as much as the Treasury’s discretion – and thus we can’t actually know for sure till the precise charges are introduced in November.
As we get nearer although, you will see lots of people chime in to this thread giving their predictions. One other helpful supply is https://tipswatch.com/, whose writer additionally posts right here typically.
Re: Starting January 1, 2025, you will no longer be able to buy paper Series I savings bonds with your tax refund.
Lyrrad wrote: ↑Sat Sep 07, 2024 3:40 amIf you are going to go to the difficulty to make a revokable dwelling belief with a notary, you may as effectively make a number of. I had many equivalent trusts created directly so I might have the choice to purchase as many I Bonds (or EE Bonds) as I wished every year.
On a number of trusts (that are seemingly permitted, however)…a unique Tax ID no. after the primary one could/should be wanted, i.e. one can use private tax id (soc sec) for particular person and one entity. Equally one might have a number of sole proprietorships. Soooooo, I submit the poster is posting “in principle” and has not gone to the difficulty (so to talk) of getting a number of belief id. We now have 2 particular person accounts with particular person Soc Sec, a belief with one Soc Sec, and a sole proprietorship with a separate tax id…..all of which have bought and redeemed through the years with no downside…. What says you?
Re: Starting January 1, 2025, you will no longer be able to buy paper Series I savings bonds with your tax refund.
LuvBogle wrote: ↑Mon Sep 09, 2024 9:29 am
On a number of trusts (that are seemingly permitted, however)…a unique Tax ID no. after the primary one could/should be wanted, i.e. one can use private tax id (soc sec) for particular person and one entity. Equally one might have a number of sole proprietorships. Soooooo, I submit the poster is posting “in principle” and has not gone to the difficulty (so to talk) of getting a number of belief id. We now have 2 particular person accounts with particular person Soc Sec, a belief with one Soc Sec, and a sole proprietorship with a separate tax id…..all of which have bought and redeemed through the years with no downside…. What says you?
Within the weblog put up, there are a number of feedback indicating that a number of TD accounts with the identical tax ID are allowed for separate trusts.
Particularly, there’s a remark from January 2023 from somebody who opened a number of trusts beneath the identical SSN to buy I Bonds.
I additionally don’t see any posts from individuals saying that they have been unable to buy bonds or open a number of belief accounts on this state of affairs.
Re: I Bonds Mega Thread (I Bond Heads Rejoice!)
I additionally don’t see any posts from individuals saying that they have been unable to buy bonds or open a number of belief accounts on this state of affairs.”
Prime
Response…None in January 2023 for this thread! In any occasion you have not finished it though you state “I had many equivalent trusts created directly”
Re: I Bonds Mega Thread (I Bond Heads Rejoice!)
LuvBogle wrote: ↑Mon Sep 09, 2024 10:49 am
“Particularly, there’s a remark from January 2023 from somebody who opened a number of trusts beneath the identical SSN to buy I Bonds.I additionally don’t see any posts from individuals saying that they have been unable to buy bonds or open a number of belief accounts on this state of affairs.”
PrimeResponse…None in January 2023 for this thread! In any occasion you have not finished it though you state “I had many equivalent trusts created directly”
I disagree with the priority that there can be a difficulty creating a number of trusts with the identical TIN. It has been mentioned in that weblog put up and on this discussion board for a number of years with nobody reporting any points with it. I select to consider the a number of stories of success over the previous few years if nobody has reported any issues, even when I’ve not finished so myself.
I created the trusts, however there isn’t a must create the TD accounts similtaneously the belief. Since there was no extra value to me to get extra trusts created, I figured I would as effectively create greater than I wanted on the time to keep away from extra journeys to a notary.
Another person on this discussion board has used multiple trusts with the identical TIN to bypass the acquisition restrict.
Re: I Bonds Mega Thread (I Bond Heads Rejoice!)
I learn that put up as stating that the identical TIN can be utilized for a number of trusts to buy I Bonds.
There are a number of posts throughout a number of websites indicating that this may and has been finished by a number of individuals, with out opposed penalties. I don’t see any proof that this can’t be finished.
I don’t perceive the assertion that that this can’t be completed ? Can any citations or proof be supplied that that is the case?
I see the January 2023 put up on the weblog put up at this link as #50.
There’s additionally e-mail communication cited from TreasuryDirect indicating that a number of trusts with the identical SSN can be utilized at this link as #36.
The weblog put up has a number of pages of feedback and the put up numbering seem to reset on every web page.
Gifting I-Bonds
Can anybody clarify to me how I-Bonds (both the bonds themselves or the proceeds of redeemed bonds) can be taxed when gifted to a grandchild?
– We now have a number of I-Bonds from the good previous days of three.4% fastened charges.
– Their face values are $5,000 every. At the moment price virtually $20,000 every.
– Some are titled Mr. Friar AND Mrs. Friar. Others are titled Mr. Friar WITH Mrs. Friar. Others are titled simply the other with Mrs. Friar’s title showing first.
– I’m contemplating giving one bond to every of three grandchildren upon their faculty graduations over the following 4 years however don’t perceive the mechanics of doing so.
Is there a authorized strategy to retitle the bonds in every grandchild’s title and present them the bonds such that the revenue, when the bonds are redeemed, can be attributable to them and taxes assessed at their decrease charges? Or would I simply must redeem them myself, incur the tax legal responsibility and provides them the web quantity?
Thanks.
Friar1610 |
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Re: Gifting I-Bonds
It says you may change the proprietor of the bond, together with naming a brand new proprietor as an alternative of a present dwelling proprietor. As a result of the bond is co-owned, it appears such as you’d each must agree and signal a kind (FW 5446 for digital bonds, FS 4000 for paper bonds).
It additionally says
Will I’ve to pay taxes if you reissue the bond?You’re the authentic proprietor. We reissued it to another person. You not personal it. You probably have not been paying tax on the bond’s curiosity yearly, you now owe tax on all of the curiosity the bond earned when you owned it. You’ll not owe tax on curiosity the bond earns for the brand new proprietor.
You’re the new proprietor. You’ll sooner or later owe tax on curiosity the bond earns from the time you turned the proprietor. You don’t owe tax on curiosity the bond earned earlier than you owned it.
Lastly, the present tax exclusion for 2024 is $18000 per recipient. https://www.irs.gov/businesses/small-bu … 0678768612 Seems to be prefer it’s been growing $1000 per yr just lately; it should be listed to inflation. It solely elevated $2000 from 2011 to 2021.
Re: Gifting I-Bonds
blortchplop wrote: ↑Sat Sep 14, 2024 11:30 am
This web page is likely to be what you are on the lookout for https://www.treasurydirect.gov/savings- … r-i-bonds/.It says you may change the proprietor of the bond, together with naming a brand new proprietor as an alternative of a present dwelling proprietor. As a result of the bond is co-owned, it appears such as you’d each must agree and signal a kind (FW 5446 for digital bonds, FS 4000 for paper bonds).
It additionally says
Will I’ve to pay taxes if you reissue the bond?You’re the authentic proprietor. We reissued it to another person. You not personal it. You probably have not been paying tax on the bond’s curiosity yearly, you now owe tax on all of the curiosity the bond earned when you owned it. You’ll not owe tax on curiosity the bond earns for the brand new proprietor.
You’re the new proprietor. You’ll sooner or later owe tax on curiosity the bond earns from the time you turned the proprietor. You don’t owe tax on curiosity the bond earned earlier than you owned it.
Lastly, the present tax exclusion for 2024 is $18000 per recipient. https://www.irs.gov/businesses/small-bu … 0678768612 Seems to be prefer it’s been growing $1000 per yr just lately; it should be listed to inflation. It solely elevated $2000 from 2011 to 2021.
Thanks. It’s as I believed it is likely to be (versus how I’d hoped it’d). That’s, I might owe the tax on the curiosity accrued up till the time my grandkids turn into the brand new homeowners. It is going to be loads simpler to simply write them checks for his or her commencement presents.
Friar1610 |
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Re: Gifting I-Bonds
friar1610 wrote: ↑Sat Sep 14, 2024 12:11 pm
Thanks. It’s as I believed it is likely to be (versus how I’d hoped it’d). That’s, I might owe the tax on the curiosity accrued up till the time my grandkids turn into the brand new homeowners. It is going to be loads simpler to simply write them checks for his or her commencement presents.
There’s a doable loophole. If you happen to create a 529 with you or your baby (not grandchild) as beneficiary, assuming you do not exceed the MAGI restrict, you may money the I bonds and contribute the proceeds to the 529, and you will not owe any taxes on the curiosity. You may then change the beneficiary to the grandchild, and so they can use the cash to reimburse themselves for a few of their faculty bills, assuming they haven’t already accounted for all of their bills with 529s and the AOTC already.
Re: Gifting I-Bonds
toddthebod wrote: ↑Sat Sep 14, 2024 12:23 pmfriar1610 wrote: ↑Sat Sep 14, 2024 12:11 pm
Thanks. It’s as I believed it is likely to be (versus how I’d hoped it’d). That’s, I might owe the tax on the curiosity accrued up till the time my grandkids turn into the brand new homeowners. It is going to be loads simpler to simply write them checks for his or her commencement presents.There’s a doable loophole. If you happen to create a 529 with you or your baby (not grandchild) as beneficiary, assuming you do not exceed the MAGI restrict, you may money the I bonds and contribute the proceeds to the 529, and you will not owe any taxes on the curiosity. You may then change the beneficiary to the grandchild, and so they can use the cash to reimburse themselves for a few of their faculty bills, assuming they haven’t already accounted for all of their bills with 529s and the AOTC already.
This sounds very step-transaction-y to me. Plus abuse of 529 (opening a 529 for your self which you don’t have any plans to make use of your self).
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)
(Because of the member who reported the put up and supplied a hyperlink to this thread.)
To some, the glass is half full. To others, the glass is half empty. To an engineer, it is twice the scale it must be.
Re: Gifting I-Bonds
bongo wrote: ↑Sat Sep 14, 2024 12:28 pmtoddthebod wrote: ↑Sat Sep 14, 2024 12:23 pmfriar1610 wrote: ↑Sat Sep 14, 2024 12:11 pm
Thanks. It’s as I believed it is likely to be (versus how I’d hoped it’d). That’s, I might owe the tax on the curiosity accrued up till the time my grandkids turn into the brand new homeowners. It is going to be loads simpler to simply write them checks for his or her commencement presents.There’s a doable loophole. If you happen to create a 529 with you or your baby (not grandchild) as beneficiary, assuming you do not exceed the MAGI restrict, you may money the I bonds and contribute the proceeds to the 529, and you will not owe any taxes on the curiosity. You may then change the beneficiary to the grandchild, and so they can use the cash to reimburse themselves for a few of their faculty bills, assuming they haven’t already accounted for all of their bills with 529s and the AOTC already.
This sounds very step-transaction-y to me. Plus abuse of 529 (opening a 529 for your self which you don’t have any plans to make use of your self).
I agree. I wish to maintain my life (monetary and in any other case) easy at this stage of my life. I additionally don’t wish to begin any complicated transactions. I would get partway by means of considered one of them, croak earlier than it’s accomplished and depart my spouse holding the bag on one thing she neither understands nor desires to finish. KISS.
Friar1610 |
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)
For comparability, listed below are excellent treasury securities in thousands and thousands of {dollars}:
Code: Select all
Payments 6,120,981
Notes 14,186,936
Bonds 4,650,816
TIPS 2,031,564
FRNs 587,537
EE bonds 32,983
I bonds 91,857
