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Focus on all common (i.e. non-personal) investing questions and points, investing information, and concept.
- Posts: 66
- Joined: Mon Apr 10, 2023 5:27 pm
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 referred to as Treasure Direct twice. After a little bit of a runaround, they are saying “somebody will contact you”. To this point 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 acquired my $5K in paper iBonds after submitting my tax return in April this yr. I acquired 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 referred to as Treasure Direct twice. After a little bit of a runaround, they are saying “somebody will contact you”. To this point nothing after a pair weeks.
I’ve at all times acquired 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 buddy who made an error when filling out the shape to obtain $5K I-bonds and the error resulted in his closing 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: 66
- 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 acquired my $5K in paper iBonds after submitting my tax return in April this yr. I acquired 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 referred to as Treasure Direct twice. After a little bit of a runaround, they are saying “somebody will contact you”. To this point nothing after a pair weeks.
I’ve at all times acquired 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 buddy who made an error when filling out the shape to obtain $5K I-bonds and the error resulted in his closing 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 informed 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 acquired my $5K in paper iBonds after submitting my tax return in April this yr. I acquired 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 referred to as Treasure Direct twice. After a little bit of a runaround, they are saying “somebody will contact you”. To this point nothing after a pair weeks.
I’ve at all times acquired 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 buddy who made an error when filling out the shape to obtain $5K I-bonds and the error resulted in his closing 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 informed 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 ponder if contacting the IRS would assist right here to a minimum of 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”
- Posts: 1739
- 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
Desirous about reward field technique for October.Now we have $140k in I bonds that’s meant as a second or third line emergency fund. Solely $20k of these are at 1.3% mounted fee.
Positive factors 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 reward containers.
Query is how most of the different I bonds to money out. One possibility is all, though the tax hit could be $6,672 or so.
About $45,000 of the I bonds could 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 preferred 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 now not a “set it and overlook it” emergency fund. That is type of annoying and disappointing.
One possibility since we now have >$250k of taxable property is just utilizing our bonds in retirement accounts as an emergency fund, and promoting from taxable inventory whereas rebalancing in retirement funds to keep up asset allocation if additional funds are wanted.
Perhaps I bond thread will not be 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?
- Posts: 66
- 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 acquired my $5K in paper iBonds after submitting my tax return in April this yr. I acquired 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 referred to as Treasure Direct twice. After a little bit of a runaround, they are saying “somebody will contact you”. To this point nothing after a pair weeks.
I’ve at all times acquired 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 buddy who made an error when filling out the shape to obtain $5K I-bonds and the error resulted in his closing 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 informed 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 ponder if contacting the IRS would assist right here to a minimum of see in case your information was transferred over to TreasuryDirect.
Yeah, the whole lot appears to be like 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 acquired my $5K in paper iBonds after submitting my tax return in April this yr. I acquired 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 referred to as Treasure Direct twice. After a little bit of a runaround, they are saying “somebody will contact you”. To this point nothing after a pair weeks.
I’ve at all times acquired 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 buddy who made an error when filling out the shape to obtain $5K I-bonds and the error resulted in his closing 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 informed 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 ponder if contacting the IRS would assist right here to a minimum of see in case your information was transferred over to TreasuryDirect.
Yeah, the whole lot appears to be like 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
Desirous about reward field technique for October.Now we have $140k in I bonds that’s meant as a second or third line emergency fund. Solely $20k of these are at 1.3% mounted fee.
Positive factors 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 reward containers.
Query is how most of the different I bonds to money out. One possibility is all, though the tax hit could be $6,672 or so.
About $45,000 of the I bonds could 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 preferred 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 now not a “set it and overlook it” emergency fund. That is type of annoying and disappointing.
One possibility since we now have >$250k of taxable property is just utilizing our bonds in retirement accounts as an emergency fund, and promoting from taxable inventory whereas rebalancing in retirement funds to keep up asset allocation if additional funds are wanted.
Perhaps I bond thread will not be 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 quick time period rate of interest fluctuations.
Financial savings bonds don’t go down in worth. The opposite possibility you talked about would give me a motive to fret: how a lot do I’ve for emergencies at present?
Additionally I-bonds supply tax deferred beneficial properties and are state tax free..
A lot of people appear to do the opposite technique you talked about, although. It looks like 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
Desirous about reward field technique for October.Now we have $140k in I bonds that’s meant as a second or third line emergency fund. Solely $20k of these are at 1.3% mounted fee.
Positive factors 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 reward containers.
Query is how most of the different I bonds to money out. One possibility is all, though the tax hit could be $6,672 or so.
About $45,000 of the I bonds could 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 preferred 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 now not a “set it and overlook it” emergency fund. That is type of annoying and disappointing.
One possibility since we now have >$250k of taxable property is just utilizing our bonds in retirement accounts as an emergency fund, and promoting from taxable inventory whereas rebalancing in retirement funds to keep up asset allocation if additional funds are wanted.
Perhaps I bond thread will not be 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 quick time period rate of interest fluctuations.
Financial savings bonds don’t go down in worth. The opposite possibility you talked about would give me a motive to fret: how a lot do I’ve for emergencies at present?
Additionally I-bonds supply tax deferred beneficial properties and are state tax free..
A lot of people appear to do the opposite technique you talked about, although. It looks like 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 greater mounted fee in reward field however on the identical time it’s my financial curiosity to take action if I plan to carry for 30 years (I assume except charges truly find yourself going even greater 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 pmEffectively, 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 selection a number of instances. I used to be planning to do that in 2025, however apparently that is off the desk now. I actually preferred the power so as to add that additional $5,000 of I Bonds to our annual stash.
How would you want so as to add $10,000 of extra I bond buying skill? 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 potential to estimate the “inflation” element with pretty excessive accuracy – as that half is clearly documented.
The unknown is the “mounted” element, as that isn’t clearly documented the way it’s decided. There have been a number of working theories, they usually can often be appropriate (or shut sufficient). Nevertheless 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 would possibly as nicely make a number of. I had many an identical trusts created directly so I might have the choice to purchase as many I Bonds (or EE Bonds) as I wished annually.
On a number of trusts (that are seemingly permitted, however)…a unique Tax ID no. after the primary one might/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 concept” and has not gone to the difficulty (so to talk) of getting a number of belief id. Now we 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 might/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 concept” and has not gone to the difficulty (so to talk) of getting a number of belief id. Now we 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.
Specifically, there’s a remark from January 2023 from somebody who opened a number of trusts underneath the identical SSN to buy I Bonds.
I additionally don’t see any posts from folks 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 folks 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 executed it although you state “I had many an identical trusts created directly”
Re: I Bonds Mega Thread (I Bond Heads Rejoice!)
LuvBogle wrote: ↑Mon Sep 09, 2024 10:49 am
“Specifically, there’s a remark from January 2023 from somebody who opened a number of trusts underneath the identical SSN to buy I Bonds.I additionally don’t see any posts from folks 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 executed it although you state “I had many an identical trusts created directly”
I disagree with the priority that there could 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 imagine the a number of experiences of success over the previous few years if nobody has reported any issues, even when I’ve not executed so myself.
I created the trusts, however there is no such thing as a must create the TD accounts concurrently the belief. Since there was no extra value to me to get extra trusts created, I figured I’d as nicely 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 could and has been executed by a number of folks, with out antagonistic penalties. I don’t see any proof that this can’t be executed.
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) could be taxed when gifted to a grandchild?
– Now we have just a few I-Bonds from the good previous days of three.4% mounted charges.
– Their face values are $5,000 every. Presently value 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 alternative with Mrs. Friar’s title showing first.
– I’m contemplating giving one bond to every of three grandchildren upon their school graduations over the following 4 years however don’t perceive the mechanics of doing so.
Is there a authorized approach to retitle the bonds in every grandchild’s title and reward them the bonds such that the earnings, when the bonds are redeemed, could 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 online quantity?
Thanks.
Friar1610 |
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Re: Gifting I-Bonds
It says you possibly can 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 to be like such as you’d each must agree and signal a type (FW 5446 for digital bonds, FS 4000 for paper bonds).
It additionally says
Will I’ve to pay taxes once you reissue the bond?You’re the authentic proprietor. We reissued it to another person. You now not personal it. If in case you have not been paying tax on the bond’s curiosity yearly, you now owe tax on all of the curiosity the bond earned whilst 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 grew to become the proprietor. You don’t owe tax on curiosity the bond earned earlier than you owned it.
Lastly, the reward tax exclusion for 2024 is $18000 per recipient. https://www.irs.gov/businesses/small-bu … 0678768612 Appears prefer it’s been rising $1000 per yr not too long ago; 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 may be what you are in search of https://www.treasurydirect.gov/savings- … r-i-bonds/.It says you possibly can 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 to be like such as you’d each must agree and signal a type (FW 5446 for digital bonds, FS 4000 for paper bonds).
It additionally says
Will I’ve to pay taxes once you reissue the bond?You’re the authentic proprietor. We reissued it to another person. You now not personal it. If in case you have not been paying tax on the bond’s curiosity yearly, you now owe tax on all of the curiosity the bond earned whilst 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 grew to become the proprietor. You don’t owe tax on curiosity the bond earned earlier than you owned it.
Lastly, the reward tax exclusion for 2024 is $18000 per recipient. https://www.irs.gov/businesses/small-bu … 0678768612 Appears prefer it’s been rising $1000 per yr not too long ago; it should be listed to inflation. It solely elevated $2000 from 2011 to 2021.
Thanks. It’s as I assumed it may 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 grow to be the brand new house owners. It is going to be rather a lot simpler to only 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 assumed it may 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 grow to be the brand new house owners. It is going to be rather a lot simpler to only write them checks for his or her commencement presents.
There’s a potential loophole. When you create a 529 with you or your youngster (not grandchild) as beneficiary, assuming you do not exceed the MAGI restrict, you possibly can money the I bonds and contribute the proceeds to the 529, and you will not owe any taxes on the curiosity. You’ll be able to then change the beneficiary to the grandchild, they usually can use the cash to reimburse themselves for a few of their school 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 assumed it may 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 grow to be the brand new house owners. It is going to be rather a lot simpler to only write them checks for his or her commencement presents.There’s a potential loophole. When you create a 529 with you or your youngster (not grandchild) as beneficiary, assuming you do not exceed the MAGI restrict, you possibly can money the I bonds and contribute the proceeds to the 529, and you will not owe any taxes on the curiosity. You’ll be able to then change the beneficiary to the grandchild, they usually can use the cash to reimburse themselves for a few of their school 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 dimensions 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 assumed it may 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 grow to be the brand new house owners. It is going to be rather a lot simpler to only write them checks for his or her commencement presents.There’s a potential loophole. When you create a 529 with you or your youngster (not grandchild) as beneficiary, assuming you do not exceed the MAGI restrict, you possibly can money the I bonds and contribute the proceeds to the 529, and you will not owe any taxes on the curiosity. You’ll be able to then change the beneficiary to the grandchild, they usually can use the cash to reimburse themselves for a few of their school 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 hold my life (monetary and in any other case) easy at this stage of my life. I additionally don’t wish to begin any advanced transactions. I’d get partway via one in all them, croak earlier than it’s accomplished and go away 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 tens of millions 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
Re: I Bonds Mega Thread (I Bond Heads Rejoice!)
The ETFs have been chosen just because they’re ones I maintain or thought-about holding and symbolize a collection of differing durations.
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)
blortchplop wrote: ↑Solar Sep 15, 2024 12:06 am
I used to be interested by what number of I bonds are excellent.
Fascinating, I had beforehand seemed on the web site, however not the PDF. It seems the relative steadiness of financial savings bond possession modified pretty considerably, in comparison with earlier than the rise in inflation. January 2021 listed:
Sequence EE – 70,602
Sequence I – 46,252
https://fiscaldata.treasury.gov/static- … 202101.pdf
45% US Indexes, 25% Ex-US Indexes, 30% Fastened Earnings – Purchase & Maintain
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)
alluringreality wrote: ↑Solar Sep 15, 2024 1:28 amblortchplop wrote: ↑Solar Sep 15, 2024 12:06 am
I used to be interested by what number of I bonds are excellent.Fascinating, I had beforehand seemed on the web site, however not the PDF. It seems the relative steadiness of financial savings bond possession modified pretty considerably, in comparison with earlier than the rise in inflation. January 2021 listed:
Sequence EE – 70,602
Sequence I – 46,252
https://fiscaldata.treasury.gov/static- … 202101.pdf
Fascinating. In tens of millions of {dollars},
Code: Select all
Jan 2021
EE 70,602
I 46,252
Whole 116,854
Aug 2024
EE 32,983
I 91,857
Whole 124,840
Distinction
EE -37,619
I +45,605
Whole + 7,986
Whereas it is potential {that a} bunch of individuals bought EE bonds and a wholly totally different set of individuals purchased I bonds, I believe it is extra seemingly that the general public who bought EE bonds used these proceeds to buy I bonds.
I ponder what number of of these EE bonds had reached their first maturity date by the point they have been bought. Bonds issued earlier than Could 2003 matured in 17 years (can we convey that again? haha); these would have been good to go. EE bonds bought Could 2003 or later mature on the present 20 years and wouldn’t have been prepared.
Re: I Bonds Mega Thread (I Bond Heads Rejoice!)
blortchplop wrote: ↑Solar Sep 15, 2024 12:35 pm
Whereas it is potential {that a} bunch of individuals bought EE bonds and a wholly totally different set of individuals purchased I bonds, I believe it is extra seemingly that the general public who bought EE bonds used these proceeds to buy I bonds.I ponder what number of of these EE bonds had reached their first maturity date by the point they have been bought. Bonds issued earlier than Could 2003 matured in 17 years (can we convey that again? haha); these would have been good to go. EE bonds bought Could 2003 or later mature on the present 20 years and wouldn’t have been prepared.
I vaguely recall just a few years in the past somebody mentioning that that they had private data of a pension/retirement plan opening many (a whole lot or 1000’s of) Trusts in an effort to purchase EE bonds for its individuals. Since 20-year charges have been nicely underneath 3.53% on the time, a plan might have executed so and restricted their losses when charges rose and later bought all of the bonds. Maybe that is what confirmed up within the information.
I could not discover the put up after I did a search.
Re: I Bonds Mega Thread (I Bond Heads Rejoice!)
1. If I purchased I bond in January 2024, what’s the earliest date I can redeem? January 2025 or February 2025?
2. What’s the earliest date I can redeem with out the curiosity penalty for the January 2024 buy? January 2029 or February 2029?
Thanks
Re: I Bonds Mega Thread (I Bond Heads Rejoice!)
user9532 wrote: ↑Mon Sep 16, 2024 11:17 am
How is the one yr and 5 yr decided for redemption functions?1. If I purchased I bond in January 2024, what’s the earliest date I can redeem? January 2025 or February 2025?
2. What’s the earliest date I can redeem with out the curiosity penalty for the January 2024 buy? January 2029 or February 2029?Thanks
1. January 2025. Buy dates are successfully backdated to the primary of the month.
Chances are you’ll even be capable to schedule in a redemption late in December 2024 if they’re digital. I’ve redeemed on the second final enterprise day of the yr and the redemption worth was as of the primary of the following month. The ACH was scheduled for the primary enterprise day of the brand new yr, however my monetary establishment credited the redemption on the final enterprise day of the yr. (I used to be capable of see the redemption worth earlier than the ultimate step.)
2. January 2029.
Redemption values are the identical for daily in a calendar month. A I Bond bought in January 2024 may have the three month penalty utilized if redeemed in December 2028, however not in January 2029.
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)
Nobody from Treasury Direct would ever return my a number of calls to debate/assist, however I simply acquired a “Declare for United States Financial savings Bonds Not Obtained” type within the mail. I’ve to get a Medallion after I signal this one (annoying). Anybody do that earlier than? It appears to be like like if my “declare” is profitable, they wont mail out extra paper alternative bonds, however will deposit my bonds on to my on-line account. That is higher. Safer.
Has anybody else gone via this course of? Do they provide you with a warning in anyway if the Declare utility is profitable? Or do I simply must logon to that annoying web site every time I consider it to see in the event that they present up in my account?
