I-Bonds Discussion Thread (continuation of the FW thread)

I-Bonds Discussion Thread (continuation of the FW thread)
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#41

Dave,
Yes, the all or none per type of savings bond is indeed a limitation. That doc mentions tax treatment when reissuing (transferring/gifting?) bonds - if I were in your shoes, I’d look into that as a possible workaround if it still makes sense.

I’d thank the admins of FD for setting this forum up to continue FWF’s legacy.


#42

Treasury Direct is eliminating the Savings Bond Wizard as of 5/18. The savings bond calculator will have to be used after that date.

From the Treasury Direct website: NOTE: The Savings Bond Wizard update for the November 1, 2017 savings bond rate release is the final update. As of the next savings bond rate release on May 1, 2018, the Savings Bond Wizard will no longer be available. However, at that time we’ll provide instructions on our website on how to convert your Wizard files to the Savings Bond Calculator.

Terrible news in my opinion.


#43

Why can’t you just look at the calculated value of your bonds on the TreasuryDirect website?


#44

Because I have paper bonds.


#45

December CPI-U = 246.524
Baseline for the next change (September) = 246.819
Total Inflation for Oct+Nov+Dec = -0.12%
We have 3 months to go before new inflation based component of I-Bond rate will be set.


#46

2.58% as an interest rate is pretty good, and I expect there will be some inflation this period so it’s not zero - but even so, 1.29% state income tax free (worst case scenario) seems OK. Thinking about buying the full $10k in January, or should I wait until the end of April, or into the next period and see if the Treasury increases the base rate (hah)?


#47

Can someone clarify this for me - how exactly does the online account works.

  1. Is there any concept of joint account? Or do i need to open separate account for myself and wife?
  2. If it is indeed separate account - let’s say i just opened one under my ss# - can i designate a beneficiary? Trying to understand if the transfer to beneficiary will be seamless.
  3. if you have bonds under multiple family member - can you view them in total within one account - or each one has to be separate login/password.

#48

If I have minor children and register an I-bond to their name (with me as a co-owner), is this a way of getting around the $10,000 limit per year?


#49

I’m trying to put more into Ibonds.

a) Not counting the paper Ibonds through the tax refund method, am I correct to say that I can buy $10k a year and my spouse can buy another $10k a year?

b) I also read somewhere that if I have a revocable trust (under my SSN), I can also use that trust to purchase another $10k per year?


#50

I never tried this, but I understand that you can get more purchases via a trust. Not sure if it needs its own EIN or can use yours. You might check bogleheads, a couple of them love their I bonds. For example, here’s an older thread there:

https://www.bogleheads.org/forum/viewtopic.php?t=77395


#51

OK, first, stipulated: I am an i-bond dummy. An ignoramus.

I should not even be posting on this thread in the midst of so many i-bond wizards.

For reasons not clear to me, in 2017 I bought some i-bonds on the net.

Now it is tax time. So I’m like, where is my 1099?

Did research and discover tax payment is optional until I redeem my bonds and actually collect the interest. This is very cool since I have not redeemed my bonds, and this also appears to be the reason there is no 1099.

Bottom line, my take is to wait and not pay the tax now (i.e., in April but I might end up filing ASAP if it turns out I’m gonna get a refund - do not know yet) since next year tax rates might be lower.

This is my first time messing with i-bonds. Does anyone think I’m making a mistake?


#52

You only pay tax on the interest if you redeem the bond. And you can defer that for 30 years. However, you also have the option to pay the tax every year.

In addition, you can also redeem the bonds tax-free for educational purposes, if you meet the income requirements.

Regardless, savings bonds are also state-tax free.


#53

Thanks. Gosh, that is a very nice feature of these bonds. I was unaware of the 30 year rule. I may buy some more of these i-bonds just for the halibut.:slight_smile:


#54

I bonds indeed have some nice features. But you are limited to $10k purchase per SSN every year.

You can buy another $5k through the tax refund method, and also by buying through your trust registered as an entity (see my question earlier in this thread).


#55

January CPI-U = 247.867
Baseline for the next change (September) = 246.819
Total Inflation for Oct+Nov+Dec+Jan = +0.4246%
We have 2 months to go before new inflation based component of I-Bond rate will be set.


#56

You can convert your paper bonds to electronic ones. Then you can see their actual value on-line at TreasuryDirect. Details here:

https://www.treasurydirect.gov/indiv/help/TDHelp/howdoi.htm#convertpapersb


#57

Yes, I can convert the bonds to electronic ones. I prefer the paper bonds.


#58

Did the new cpu-u rate come out yet? Is this thread dead


#59

MoneyOCD hasn’t been here in a long time.


#60

NEXT RELEASE
March 2018 CPI data are scheduled to be released on April 11, 2018, at 8:30 A.M. Eastern Time.