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@DiamondNestEgg: When purchasing gift iBonds when the fixed-rate is more than ZERO, is the Fixed-rate permanently transfer to the iBond gift recipient? Thanks in advance !!!! P.S. Thanks for your quality and clear presentations !!!!
@ Diamond Eggnest I try to watch all of your videos because I get most of the answers:) Wish I find your videos earlier Thank very much for your time for all the videos
Thank you Jen for the detailed as well as entertaining explanation. Jen, in your opinion, how much IBond investment amount do you think is enough before considering putting into higher interest investments.
Thank you for valuable information. For gift to spouse, seems like one can only buy 10,000. Do we have to wait till the next day or five days later to buy the next 10,000? Thank you.
This video explains how the gifting process works: How To Buy More I Bonds in 2022 | I BONDS FOR COUPLES (Buy MORE Than The Annual I Bond Limit) ruclips.net/video/bSoZJJypSAQ/видео.html
@@DiamondNestEgg I called TD. They changed the rules. You cannot purchase gifts for SSN that already purchased I bonds for this year. You can only do it if there SSN did not reach that limit of 10K per calendar year. So the gift option is really not that helpful to someone that wants to capitalize on the 9/62% rate.
@@viselchakforyou What we've seen & heard in the community from the recent glitches is that what you get on the phone is not always cut & dry nor consistent. As I've mentioned in other gifting videos, what's allowed with regards to gifting is stated clearly on TD's "updated" website: ruclips.net/video/WPcQrYLz1rc/видео.html - as well as in the Electronic Code of Federal Regulations governing Savings Bonds: www.ecfr.gov/current/title-31/subtitle-B/chapter-II/subchapter-A/part-363/subpart-C/subject-group-ECFR40621f7738442c1/section-363.52 Having said that, everyone's financial journey is different - folks should do what best suits their individual circumstances & what they're comfortable with.
@@DiamondNestEgg Thank you! I will call them again tomorrow. The glitch in the system still exists for me and I am unable to purchase gift ibonds for my spouse because the system looks at her contribution for 2022 and disregards "gift" purchase, contradictory to their instruction video how to purchase gift I bonds.
Forgive me but it takes me a bit more clarity to grasp these concepts. When you say you’ve gifted each other 30k for 2023, 2024 & 2025, are you actually paying now for the future? Are you also saying that you are locking in current rates at the time of gifting? I’ve purchased binds for 30 years. I transferred a chunk into my son’s name a few years back. I’m 67 with very little for retirement so I need to really understand these rules. Thanks so much!
love the video! I just recently got involved with I Bonds and I wish I would of known about it long ago! Just subscribed to the channel! Thanks for the great info
Hi Jennifer, I purchased 10k last year for my wife and it is siting in my gift box account but it is now worth $10,200. Can I deliver the full amount including the interest this year? You are simply the best! Thanks for all the videos.
Typically not if you gift to a spouse (although there a few exceptions): www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes If you're gifting others, I talk about this towards the end of this gifting 101 video: ruclips.net/video/bSoZJJypSAQ/видео.html
Oh-oh. Is there a problem since I have exceeded the annual delivery gift amount to one person? Through the years I have sometimes purchased (thru Treasury Direct) the maximum dollar amount allowed I Bond as a "gift" for my husband. This made sense as I was purchasing one for myself anyway and it would save him from having to do it. I wasn't aware that receiving I bond "gifts" was limited: frequently I "delivered" to hubby's TD account 2 years' maximum purchases (e.g., $20,000 in 2013) in a single transaction. None of these transactions was rejected and hubby's current holdings list all of these bonds. All of his bonds in TD were gift bonds -- all issued in separate years -- and his TD account lists current values that include accrued interest. Do you think there will be any problem when he eventually attempts to redeem these bonds?
I can’t say because we’ve never come across such a situation, but you can either call TD to see what they say or just wait and see what happens - it’s really up to you. Keep us posted on what happens - in case another supersaver finds themselves in the same situation.
If I purchase $10,000 of I bonds at the end of October, what would be the interest that I earn for the next 6 months? It is quite confusing. Thank you for your videos!
This video explains how I-Bond interest works in detail: I-Bond Interest Explained: When Does It Show Up & What's The I-Bond Calculator Formula? ruclips.net/video/9hfHoSijJEk/видео.html
PLEASE VERIFY- A LITTLE COMPLICATED- my wife and I bought 20k in IBONDS in December 2021 and January 2022 - our annual limits - then gifted 20k - a piece to each other in August and October 2022 to deliver this year and 2024 - so we need to deliver the August 2022 gift by December this year? Or I will be stuck having to wait until 2024 to deliver the August 2022 and the October 2022 gift until 2025? HELP!
What happens when you gift your spouse 10000 dollars and your spouse gifting you 10000? Do i have to claim that as regular income and pay taxed on that or do we just pay taxes on the interest on the 10000 dollars?
Long story short I only found out about I bonds a few days ago and stumbled onto your videos as I was researching them. It turns out, based on my research, (including your videos), I have already done EXACTLY what you said you are doing 3:15 in. For the folks that really get this "situation", enough said. But more importantly I appreciate the detailed presentation with excellent clarity, and emphasis on what forms a decision here for each individual. Kudos for finding a unicorn here for all to which it may apply, and the extent of that application for each individual. But more importantly you are emphasizing the realities and constraints of longer-term planning which is ultimately the most important thing to be done as this unicorn, and eventually all others, ride off into the sunset. Thank You!
I think the inflation is reaching it's plateau. After that isn't the I bond yield would go down sharply (assuming the fixed factor stays at 0). Isn't too risky to plan gifting for 3 years as you planned.
Hi Jennifer. My hubby accidentally delivered his I-bond gift to me just five days after he purchased it. This means that it will be refunded to him in 12 weeks because I have already purchase my own I-bond of 10K, right? I cannot believe this has happened.... Is there any way to undo the delivery? T_T
I personally do not feel locking otherwise good liquid money into I-bonds as gifts for each other is a good move. Even if you get a high 8% in the first 6 months, it may not be the same in subsequent years. Instead, I can put my money in premium dividend equities at bargain prices now, receiving a 4-6% dividend plus unlimited upside for the long term with high liquidity and a lot less work.🤔🤔
So if I purchased $10K in Ibonds for myself back in April 2022 and my mom wants to gift me $10k in ibonds this month to get the higher 9.62% for me, she can purchase them, BUT can't deliver them to me until January 2023 at the soonest because I already maxed my 10K annual this year, correct?? And IF she delivers them to me in January 2023, does that mean I can't purchase any Ibonds for myself in 2023 because of the 10K max which was delivered from my mom in January? Hope this makes sense!
Thank you so much for your entertaining and informative videos. My wife and I were planning on each buying $10,000 in I Bonds to take advantage of the 9.62% return right now. Next year we were planning on buying another $10,000. After watching this video it sounds like we should buy next years planned purchases now also to lock in the 9.62% (as gifts) and then gift them on January 1 next year rather than waiting until January 1 to buy them at probably a lower interest rate.
Have you seen this latest September update video on buy/ gift now vs later - if not, check it out. It may help inform your decision on timing: ruclips.net/video/vvKJr1ric-s/видео.html
I’m buying 3 years worth now (for 22, 23, 24) will deliver 2 in January 2023, 2 in January 2024 & cashing all 6 of them in January 2024 (assuming inflation is back down to 2-4% as I’m expecting). I don’t think it’s wise to buy more than that unless you really think inflation will still be high in January 2025.
Hi, Jennifer, love your videos. Here's a question: Can I gift an I-Bond from my personal account to my revocable living trust? And vice-versa, can I gift an I-Bond from my RLT account to my personal account?
@@DiamondNestEgg Thanks for the speedy reply. Next question: I could buy a gift ibond(s) for an elderly person in my life, name myself as beneficiary, never complete the gift (in fact they wouldn't know there was a gift) but when they pass away I could transfer the gifted ibonds to myself?
Hi, I recently discovered your videos and really appreciate your sharing your knowledge about purchasing and gifting I Bonds! In this video you discuss the form used if a recipient dies before the purchaser has transferred a gift bond to them. Can you tell me what happens if it is the purchaser who dies before transferring the gift bond to the recipient?
@@DiamondNestEgg Thank you for replying. BTW, I've always considered savings bonds to be my emergency fund. Easy to redeem after holding for a year. But with the high rates they're earning now, I'll use alternative cash sources if the need arises.
An example is easier to illustrate this. As we read it, if your gifter bought you an I-Bond in Jan 2022 & delivered it to you today in Aug 2022, the earliest you could cash out would be Jan 2023.
Such good advice, we decided on gifting for 2023 and 2024 if the rates next May are significantly lower. If not then we will buy our max and hold the $20K of Ibonds we bought each other.
Still unclear. If you gift 30k to someone and don’t deliver it, if you die what happens if the amount gifted exceeds the amount the giftee can buy i bonds for a year?
I think you’ve asked this several times already, but here it is again. Please see the pinned comment at the very top of this video: ruclips.net/video/bSoZJJypSAQ/видео.html Point 2- when you go to the ECFR link, it’s point c.
To be precise, using your example, you can „gift“ one another $10K in 2022 and „deliver“ those gifts in 2023. This gifting video should provide more clarity: ruclips.net/video/bSoZJJypSAQ/видео.html
Can you do a video on treasury bills as a way to build up and store an emergency fund? Looks like the rates for treasury bills is double that of CD’s and high yield savings account.
Thank you for the detailed video. I just tried purchasing a gift from my account for my spouse and it gave me below error. My initial purchase of $10k was 6 months back and I also made sure that I added my wife and checked the box that states "This is a gift". Did I miss something ? Annual limit exceeded. Please edit the purchase amount or edit your pending purchases under ManageDirect, if applicable, and try again.
As we understand it, if you have one revocable living trust, you can buy $10K per year currently for that trust. Here is the how to buy I-Bonds with your trust video: ruclips.net/video/7OWgbccetv8/видео.html
Thanks for great videos as always Jennifer. If I purchase i bonds for a minor but still sitting in my gift box undelivered. Should those ibond count as my asset?
Does I Bonds start to mature in the gift box? If I purchase them for my parents now, and give it to them as retirement gift 5 years from now, would they be able to cash it out?
Yes, it's different for spouses. Here's more info from the IRS site: www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes
Thank you so much for the video, this is the best video on ibond on youtube. You mentioned gifting your spouse $30,000 this year in I bonds and it was done in 3 separate purchases. Is there difference between doing it on one $30,000 and 3 $10,000 purchases? Thanks in advance.
@@DiamondNestEgg Meaning that you could purchase more than $10K gifting to the same person in the same year? Just need to make multiple $10K purchases, does that sound right? Thank you in advance.
@@yuhuima8332 As we read the Electronic Code of Federal Regulations, yes. But I would highly suggest watching this video first for the caveats & limitations if you are thinking of gifting more than $10K to the same person.
Let's say I buy $50K iBonds for my adult child this year intending to give going forward and I die next year. What happens to delivery of those bonds. Do I need to manually "deliver" the bonds to the recipient? How does an estate handle it?
There are specific forms to fill out - your executor would need to contact TD directly for specific instructions. Here’s more info from TD: www.treasurydirect.gov/indiv/research/indepth/ebonds/res_e_bonds_eedeath.htm
Me and my wife bought 10K of I Bonds for each and additional 20K each as a gift for each other to be delivered in 2023 and 2024. My question is since it crossed the annual gift limit of 16K, do we need to pay gift tax?
As it reads from the IRS website, gifts between spouses are excluded. Here's the IRS link for reference: www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes I'm not a tax attorney though, so if you have further questions, would suggest reaching out to one for 100% clarity.
@@DiamondNestEgg Thank you, per my research, gifts between spouses not taxable. I am going to purchase $10000 more as gift and the total gifts will be $30000 this year. Thank you.
@@sudheerk82 Nice. I was going to only buy 2 gifts at $8,000 each but I guess I’ll buy the full $10,000 now. Thanks for asking. I would do 3 years worth but I’m not confident inflation will be high enough in 2025 & I don’t want $20,000 locked up only earning 2% for a full year. With buying $20,000 in gifts each you can cash them out along with your $10,000 in January 2024 & the 3 month penalty will likely apply to a much lower rate.
@@JC-li8kk I agree I-bonds yield will come down in 2025 but we dont need to keep whole 2025. We will deliver the gift in Jan 2025 and we can cash it out right away.
I have a question… if I buy a gift ibond for 10k today will it start earning 9.62apy until I deliver in jan next year and does the 1 yr start today itself?
Great video on gifting. So I set up a $10,000 gift to a relative. It is still in my treasury gift box. I intended to transfer the gift it in 2023 after the 12 month holding period expires. But now, I changed my mind about this person. Can I now change the name of the recipient to another person? Thank you.
Unfortunately not. You can only buy an I-Bond via TreasuryDirect. In case you’re interested, this video shows you how to open a TD account and buy your first I-Bond: ruclips.net/video/adzmox__2zM/видео.html
Ok, I bought 2 ibonds for this year. My wife and I also gifted to each other the maximum $10K each to be gifted on Jan. 1 2023. We have no intention on needing this money, but I'm curious. Does the 1 year holding period on a gifted I bond start only after the gift is delivered? So when we gift to each other on Jan. 1, 2023, We can't touch until Jan. 1, 2024 I assume??? Great video's, should be taught in school, instead of a lot of other shtuuuffff!!
I opened a account on Treasury direct, they put a hold on the account because they want the account authorization form 5444. My question is why do they do this, and is this normal procedure.
Hi Jennifer! Loving your videos! I am a new I-Bond investor. I will subscribe and keep watching your videos if you help to keep us informed when I-Bonds no longer make sense. I was also just watching another video where guy was saying, "Only buy I-Bonds in April and October" is that so? I didn't know there was a best time to buy I-Bonds. May be another video for you :) Thank you!
Thanks - and yes, of course I will give updates about what we’re doing with our I-Bonds! I don’t know the video you’re mentioning, but can only imagine the author is implying April & October make the most sense for new purchases because it is when you’ll know what you’ll earn for the next 12 months. And I would say - April, May, Oct, Nov & Dec months are „big“ I-Bond months here - but the best time really depends on your financial circumstances, view on inflation & simply when/ if you have the money to buy. Stay tuned my friend & spread our I-Bond love to your friends & family!
I watched the same video, buy bond in October to lock interest 9.62% from May, and you can forecast interest that will happen in November from the inflation number in October. Meaning you will earn12 months of interest bond that is predictable.
Here’s more information on who can own/ who you can buy I-Bonds for (as a gift) - from the TreasuryDirect site: www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_ibuy.htm
Hello Ganesh, we are also on H1. Me and my wife bought 20K each as gift for others and these to be delivered in 2023 and 2024. Do you know if we need to pay gift tax?
We purchased 20,000 worth i bonds between two of us. We also gifted each other $20,000 each.we like to purchase $20000 more as a gift but it was denied. Treasury will refund our money. Where did we go wrong? To day we tried to purchase a gift but in confirmation it does not show as gift purchase, so we may get money back, need help.
Hi Jennifer, my dad and I just started learning more about I-bonds and came across your helpful videos. I recently bought 10k of I-bonds and within same month My dad gifted me and delivered 10k to my acct. Will I get penalized or what will happen? Can you point me in the right direction?
Have you gotten a message from TD? If not, what I would do personally is just wait. I've heard of folks that got an email saying they went over & their money would be refunded, BUT I have also heard of folks that got this email, never got their money refunded & then the gift just appeared in the gift box a few months later.
Jennifer, I absolutely love your videos. I have a couple of questions about gifting an I-Bond. (1) Can I give an I-Bond to my fiance? (2) Assuming the answer to my first question is "YES", If I have already purchased a $10000 I-Bond for myself in 2022, can I now give a $10000 I-Bond to my fiance also in 2022? Thanks.
Thanks - and the answer is YES to both. Here’s the video on how to do this: How To Buy More I Bonds in 2022 | I BONDS FOR COUPLES (Buy MORE Than The Annual I Bond Limit) ruclips.net/video/bSoZJJypSAQ/видео.html
Hi Jennifer, I can help answer the question you had concerning how TreasuryDirect well return your money if you exceed the $10,000 limit. I exceeded the $10,000 limit this year by mistake. I Bought $10,000 of eye bonds twice
I received an email from TreasuryDirect saying that I had exceeded my limit and they were going to re-deposit my $10,000 back in the bank from which you came. The only catch wise it was going to take 10 or 12 weeks before this will be accomplished.
@@martinwilliams4561 Thanks for sharing this with us. I am wondering will they deposit money that come from a gift to you or to the person that has bought the gift. Or is it possible that the Ibound go back to the original gift box?
@@najsp4736 This was not a gift and was not in the gift box. I mistakenly bought it for myself after I had already purchased and I Bon. So I purchase two in the same year and TreasuryDirect emailed me to tell me I cannot do this and they would return $10,000 back to the checking account from which it came
I made this mistake, even following her great walkthrough. I got the email saying they would return it to me. But I also messaged treasury saying I made a mistake, I wanted it to be a gift. Lo and behold, they fixed it. No message. I logged in and it was changed to gift to spouse pod me.
I tried to add $20000 gift to my wife. The app would only allow $10000at one time. Do I have to purchase 2 seperate $1000 gifts with my husbands name on them.
My spouse purchased 10K for himself this year, I then purchased a 10K gift for him, with the intention of delivering it in a future year. However, I realized two weeks later that I made a mistake---I ended up delivered it to him. What happens now? Will I be penalized? What happens to my 10K? I'm curious as to why TreasuryDirect allowed me to deliver it to him even though he reached his purchase limit for the year.
@@DiamondNestEgg I waited until after the 5-day holding period, and delivered it. It currently shows in his account. And no, I did not receive any error messages. It appears that everything went through solidly.
@@hoatruong7557 I haven't come across this issue yet, but I'd say you could do one of two things: 1) just wait & see what happens or 2) call TreasuryDirect, explain to them your situation & see what they recommend. There seem to be some "glitches" in the TD system - so maybe you both got lucky this time around. Either way, let us know what happens! I'd be curious to know if your husband ends up being able to just keep his gift.
This is what I was told this morning. A team prints out a list. Accounts with excess purchases/deliveries will be notified by email and a refund will be processed. There is no penalty. Whether it was a purchase that pushed the purchaser over the limit or a delivered gift that pushed that recipient over the limit, the refund process is the same, and it could take up to 16 weeks. If for some reasonTD does not issue your refund (i.e. it's your first offense), then consider yourself lucky, as they've decided not to do anything about it and to just let you keep the i-bond. In the meantime, you could continue to buy i-bond gifts and keep it in your gift box.
Enjoy your videos. My wife and I bought each other gift bonds in April. Our plan is to transfer those gifts in January so that 7/12 of minimum holding period will already be past. Then in January if inflation is still running hot we can buy more gifts in January.
1. Can I purchase I Bonds for my nieces and nephews? If so, through gift or just open a kid’s account? 2. Can I add a beneficiary to bonds I purchased for myself?
You can purchase it as gifts, but you will need their SSN. If the parents have set up minor-linked accounts for them, you can then "deliver" the gifts directly to your nieces' & nephews' minor-linked account numbers. If not, you will have to wait until the parents set them up or when your nieces & nephews turn 18 & set up their own TD account to deliver the gifts. Here is the video for the parents to set up a minor-linked account for your nieces & nephews: ruclips.net/video/YlE3Uxoeah4/видео.html And here is the video on how to buy I-Bonds as gifts: ruclips.net/video/bSoZJJypSAQ/видео.html
Thanks for your valuable advice. Please help me understand - what happens when gifter (spouse) dies and the money is sitting in his gift box ? Who gets the money in that case ?
Another great video. Regarding the $10k annual limit, if I purchase a gift of $10k this year, and deliver it 12 month later, it will be worth $10,854. Does this count as within the limit ($10k) or out of the limit ($10,854)?
My spouse and I have followed your example and bought each other gift bonds for 3 more years. Can I buy a gift for our trust and give it to the trust next year? I have already deposited 10K into our trust for 2022.
Does each gift collect the full interest until it is distributed to the recipient, possibly over multiple years, or does interest begin only when the gift is delivered to the recipient? Thanks.
Hi. I explain all the details on I-Bond gifts in this video section (e.g., interest, minimum holding period, delivery restriction): ruclips.net/video/bSoZJJypSAQ/видео.html
Your video is informative. I and my spouse are planning to buy ibond. But my wife doesn't have a bank account and we are planning to use the same bank account, which I used for my treasury direct account. I hope we can use the same bank account for two different treasury direct accounts?
@@DiamondNestEgg But at the step of entering the bank account details for my spouse's treasury direct account, portal also asks for the "Name on the Account". Now since the bank account belongs to me, so it would be my name in this field. So would there be any issue due to this, from Treasury Direct's side? Also do you by chance know anyone, who might have done this before?
If I put in the limit of 10k on the 1st of may, will my interest be 9% of 10k which is $900 / month or is it a one time interest at the end of the 6 months.
The projected 9.62% is on an annualized basis - it is not monthly. I'd suggest watching this video section for more details on I-Bond interest, limitations & restrictions: ruclips.net/video/adzmox__2zM/видео.html
@Diamond NestEgg, quick question, If I and my spouse both have bought the I-bonds of $10k each today. Can we gift another set of I-bonds of $10k to each other next week alongside being mindful of not crossing the $10k limit of each year.?
As we read it, yes. Please do follow this video tutorial though - we‘ve had 2-3 people with issues & it was typically because they didn’t go through the steps properly (in which case your transaction will not process OR you will get a msg saying you went over your annual limit): How To Buy More I Bonds in 2022 | I BONDS FOR COUPLES (Buy MORE Than The Annual I Bond Limit) ruclips.net/video/bSoZJJypSAQ/видео.html
@Diamond NestEgg, quick question, if I buy a 10K gift for my spouse and deliver to her next year to max her limit for 2023. I can withdraw the 2022 I-bonds in 2023(without last 3 months of interest), but when the other person could withdraw the 2023 delivered gift since that amount has already got the interest for an year in my account and now in 2023 its delivered to my spouse so she need to wait until 2024 or she can withdraw right away in 2023?
Hi there - so using your example, you can “deliver” the 2022-purchased I-Bond gift to your spouse in 2023 and she can “withdraw/ redeem/ cash out” in 2023 once delivered. Just want to use the TD terms for clarity.
If you gift each other $30,000, it will actually take 4 years to deliver the gift completely, because of the interest that accumulates on that $30,000. Right? I'm trying to figure out how much I can gift that can be completely delivered next year, including interest. I'm thinking $9350 for sure, and probably $9400, unless the November rate is higher than 9%.
It’s only going to take you 15 months to cash $60,000 in i bonds if each of you were to buy $10k limit, $20k gift today. You could cash all of them in January 2024. May be smarter to buy two $8k gifts to avoid gift tax ($16k).
These are my questions today. Can LLCs buy I-Bonds? Can a trust or LLC be the beneficiary? Can I gift I-Bonds to multiple LLCs? What happens if there is deflation? Or interest dips to zero.
1) Here's the video on how to buy as an LLC: ruclips.net/video/4f-ZIoiOFt0/видео.html 2 & 3) No 4) You keep the face value + whatever interest you've earned previously. Detailed explanation in this video section here if interested: ruclips.net/video/bIq8XXo4Vfo/видео.html
Great video, one topic not addressed is taxes on I-bonds. Understand if you keep an I-Bond in a gift account for five years a major caveat is; the bond will accumulate interest that can not be included yearly by anyone on a federal tax return. (I-Bonds are exempt from state tax) If the recipient received the gift after five years and decided to cash the bond, all the interest would be applied to that year. Although somewhat time consuming, it may be prudent to buy ten one thousand dollar bonds instead of one ten thousand dollar bond. I certainly wish I had done this a long time ago.
In the late 90s and early 2000s credit card offers abounded, at the time offering 100,000 airline miles after spending $10,000 or more in the first statement period. My wife and I took advantage of multiple offers, accumulating over a million frequent flyer miles, simply buying I-Bonds with credit cards. We initially intended the bonds would be used as a tax free education fund for the benefit of our son; but this proved to be infeasible after he was awarded a full scholarship to college. For many years after we kept these bonds as a rainy day emergency fund and fortunately never had to tap into it. I-Bonds issued between 1998 and 2002 offered guaranteed interest rates for the life of the bond between 3.4 and 3.6 percent, combined with the added inflation guard, they have steadily outperformed 5 year CD rates for twenty years, or more, and we never saw a reason to cash any of them. Returning more than 10.5% presently and in excess of 13% starting next month, our I-bond portfolio will likely generate more than $40,000 of taxable interest income this year. I would offer this word of caution. Pay all Federal taxes on a yearly basis! I never imagined at the turn of the last century we would still have these today and unfortunately I did not take my own advice. I- bonds are issued with a thirty year maturity, ours will be coming due in the not too distant future, and while I really should not be complaining, we are going to pay the tax man rather handsomely whenever we surrender these bonds
Thanks for the feedback & congrats on those 3.4% and 3.6% I-Bond fixed rates from those early days & that full scholarship for your son! I'd love some hints if you have any on that last one - we could use them! Just a few things things to note regarding taxes: 1) You do not have to gift the recipient the full amount of the I-Bonds you purchased for them, so say that you bought $10,000 as a gift for your wife/ son some years back, you can gift just a few hundred or a few thousand - you don't have to gift the whole thing. And even if you do, when (s)he redeems the gift bond, (s)he can still choose to redeem it in full or just partially, depending on how the interest earned upon redemption will impact his/her tax rate for that year - since only the interest earned on the amount redeemed will be taxable at a federal level. 2) Paying taxes on an annual basis is very complicated - for many reasons. That's why most folks choose to pay upon cashing out. If you choose to do it annually instead of upon redemption, you have to do it for each & every Series EE, E and Series I bond that you own & this involves a lot of work & effort because: First, you don't get a 1099 until you cash out, which means that you need to calculate the interest earned every year yourself for each bond that you own. Second, TD does not offer monthly or annual statements which means you have to go in and print out your account values at regular intervals to track how much you're earning - again for each bond that you own Third, you'll need to track over the years everything that you've reported to the IRS and then make the appropriate deductions when you cash out to make sure that the appropriate amounts are deducted from the final 1099 that you get - otherwise, you'll be paying taxes twice There are other considerations as well (e.g., what do you do with the early withdrawal penalty in the first five years,) so for those that are interested in doing this, here's the IRS publication for more details: www.irs.gov/pub/irs-pdf/p550.pdf Having said all this, for folks that are in a much lower-tax bracket (say minors for example) - it may make sense, but it's something everyone needs to decide on for themselves - whether all the additional time & effort might be worth it for the tax savings achieved.
Wow! Having only started paying any attention to bonds as i neared retirement it is amazing to hear about your good work and any bonds that pay this high Rate! Wow and well done. Don’t let taxes run your investments, is what I have heard, so I think you have a win even if the taxes bite.
Will making the gifter a co-owner on the gifted IBonds count towards the gifter's annual purchase limit in the year the gift is delivered? My case: I purchased 10K of IBonds for my wife & they're sitting in my Gift Box in TD. She is listed as the sole owner (Forgot to put myself as beneficiary :( ) If I registered this 10K gift as my wife & I co-owners, when I give them to her in Jan., 2023 would the bonds' co-owner status make 5K count towards my annual purchase limit? I thought so & that's why I made her the sole-owner. Thanks.
You can't make yourself the secondary owner on a gift bond at the time of purchase. After delivery to your wife though, she can add you as the secondary owner. The limit applies to the SSN of your wife, to the primary owner - not to the secondary owner or the beneficiary.
If the treasury fails to pay, it won’t matter how much money you have saved up, it’ll all be worthless. So why not. Even if you bought gold, the government would devalue it or outlaw it. Read about the Great Depression, gold was outlawed and people were forced to turn it in to the government and heavy penalty if caught bartering with it. Gold Reserve Act of 1934.
Thank you once again for this nice video. Can you please create a short video on how to redeem(cash) electronic ibonds, showing what the Treasury Direct portal asks for while redeeming. I am sure there might be a handful of steps, following which the ibond would be redeemed and the money would be transferred back to the bank account. But it would be very helpful for someone new to ibonds, to know what to expect after 1 year when redeeming them. Such as, if there are going to be any surprises which portal gives during redemption etc. Thanks. If the video would take some time to be prepared, can you please share any details here, around what redeeming/cashing of ibond on portal looks like?
Hi Jennifer. Is it better to break up the $10k into two groups if you predict the inflation is increasing so you can purchase $5k before April and another $5k after April so that way you’ll get higher interest rate ? It’s kind like dollar cost averaging So you are any issue with this approach ?
That really depends on your financial circumstances (e.g. what are you earning on that $5K that you’re not putting in now). Remember, you still get the higher November rate if you buy now, assuming it is higher in November as in your example, you just get that rate six months later.
If my husband and I buy 10k I bond gift for each other this year and deliver to each other next year ( assuming that we’re not buying I bond next year). Will we be able to cash out right away after we got it or we have to wait for the whole calendar year to cash out?
Thanks for a great video.Undelivered I-bond count toward whose asset, donor or recipient? Can a person delivered I-bond to several recipients in the same calendar year? Thank you.
An undelivered I-Bond is still considered “owned” by the recipient as it is in their name, but if you’re speaking specifically about financial aid for a child (as an example) - the answer is I’m not sure. Here’s what I mean - if my sister were to buy my kids I-Bonds as “surprise” gifts but doesn’t tell them about it, they wouldn’t be able to include that as an asset on their financial aid application. And yes, as we read it, you can deliver to multiple recipients as long as you stay under the $10K annual limit & the recipient(s) haven’t purchased anything for themselves in that year.
@@DiamondNestEgg Jennifer! you read my mind. Yes, I am refer to financial aid for a child. I am admire you as one of a very smart and intelligent woman/mom. Thank you for clearly response, it helps me a lot.
Can you gift an entity? My spouse and I both have small businesses, so that could be a way of buying more ibonds right now, which would be a really good day to do so (8.5%)
In looking at the historical i-bond interest rates since inception, i can see why someone would not be worried about buying a whole lot of them...am i missing something? oh, and btw...i enjoy you and your videos!!
Thanks - I think it really depends on your stage of life, risk tolerance as well as the returns you think you might be able to get elsewhere. Everyone’s situation is different.
Hi, Do we get a 1099 from Treasury Direct at end of each year? Or we get the 1099 interests after we withdrawal from the account? Pretty much I want to know when do I pay my federal taxes on the interests earned from Ibond?
When you redeem at the end - some (not many) people choose to do it every year, but that gets really complicated - you’d have to speak to your tax advisor if that’s what you decide to do.
Thank you for great job you are doing. If I buy gift I bond for my wife that will be delivered in future , can I be co owner ? I prefer to be co owner instead of beneficiary.
You have to be the beneficiary. Some folks have tried in the past & it didn’t work with co-owner. Also, I would imagine if you made yourself co-owner, one could make the argument you’re technically gifting yourself so it’s not really a gift to your spouse.
Thanks !! Can I gift ibond to a minor, whose account is a minor linked account in my treasury direct account? And if I can gift, how do I do that? And also how to deliver that to the minor? Because the minor would not have his/her own treasury direct account, to receive the gifted ibond into.
I have heard of folks doing this, but according to one of my conversations with TD, it's not something they "encourage". Here's the gifting tutorial if you decide to go ahead with it (it's for a spouse, but you can gift anyone with the instructions we've provided): ruclips.net/video/bSoZJJypSAQ/видео.html And your child would have a TD account number if you set up a minor linked account for them. Go to ManageDirect & click on Access My Linked Accounts. Next to your child's name is their account number.
We love your videos!!! New to all this. Purchased my yearly limit last week. First time ever. Then my Fiancé set up account and purchased $3000. Once we heard about gifting. I went ahead and purchased $7000 as Gift to her. We sat down together and followed your directions. Gift. etc. even beneficiaries. Unfortunately today I received the dreaded email my $7000 was being refunded because I reached my limit. I know I checked off Gift. Obviously calling is a 2 hr hold. Do you think there’s anything I can do or suck it up and do over when the money is refunded 🙁
One question so that I understand everything correctly - if your fiancé just purchased $3K, why did you purchase $7K as a gift for her? She could have just bought another $7K for herself in her own account given that the annual purchase limit is $10K. So if you do decide to try gifting again, keep these things in mind - as we understand it, these are the three issues that usually trip folks up: 1. Be sure you check the "This Is A Gift" box - just double/ triple-check this part. 2. Make sure when you purchase the gift, that you are actually choosing the gift "Registration" you set up for your fiancé & that you are not buying more I-Bonds for yourself. 3. Once you have purchased the gift & it shows up in your Giftbox, ready for delivery (usually 5 business days after purchase date) do not deliver it right away. Deliver it to your fiancé only in a year when she has not purchased their annual limit - otherwise, you will put her over her limit. Hope this helps.
She did not have additional $7000 to purchase her limit of $10,000 that is why I gifted the additional to her. I guess despite our double checking. The GIFT BOX didn’t get checked. I was going to deliver the gift as soon as I was able. I tried calling but as you always say. I was on hold 2 hrs. and had to finally hang up. Was hoping if I spoke with someone that they could fix it on their end instead of waiting for the refund. Ughhhh
Just following up on my gift purchase Mix up. Finally got through on phone. Was told instead of waiting for them to refund my purchase that mistakenly was bought under my account and took me over the $10K limit., that I can go into Manage Direct. Edit Registration. Click on Bonds purchase to be changed. Hit Submit. Answer Security question. Then add new registration if not already in drop down. Check off Gift box to reassign it to my Fiancé. I have not tried it yet. But not optimistic since despite adding her as a registration. Her name never shows up on my drop down. I’ve done it all step by step correctly. But I’m going to try. The rep on phone seemed confident I can reassign the bond without waiting for refund
@@DiamondNestEgg update: Got the $7000 Transferred as GIFT to my Fiancé Account using the Manage Direct Edit Registration Bonds. Security Question check. and assigned to her. Originally she was not showing up on my added registration list. But clearly she was in my list. I could go to update registration list and see her there. Treasury Direct Rep agreed that she was indeed listed and as Gift registration. A good old fashioned glitch we have to assume. But I got it transferred to her as Gift with rep on the phone. But in future if a mistake happens like forgetting to check off gift box. It can be fixed without staying on hold 2 hrs. Thank you for your videos Mike
@@DiamondNestEgg I bought I bonds in Jan 2022, when will I see interest payments displayed on my account? Where can you see the interest payment? Thanks for the help Bond Queen.
@@danwesson1934 Bond Queen - I like that! So the answer is Month 4 - any day now basically. Three months’ interest always deducted in first five years so that the redemption value reflects the early withdrawal penalty.
@@DiamondNestEgg I read they hold 3 months of interest to cover the early termination penalty of three months interest payments. Does that mean during the first 6 month cycle, only three months of interest are added to the principal for the 2nd term of 6 months? Sorry to nail you with questions. Your the only one I communicate with that dorks out on savings bonds as much as I do. I found the I bonds weren’t a great conversation piece at dinner with friends lol. My wife wants to puke at this point because I’ve been obsessing over ibonds for a while. She says “your watching her again” lol. Thanks BQ
@@danwesson1934 So, keep in mind, my answer is is based what the TD reps have told me, given that we've also only held our I-Bonds for a few months only - but I do call 2 - 3 times to make sure I always get the same answer. So, according to them, you're still getting your interest every month compounded, but what you will "SEE" online on your dashboard is everything minus the three months' interest. And when the five year hits, voilà - what you see is what you get - everything is there. My hypothesis is that they didn't want folks to see one number on their dashboard before year 5 and when they redeem, they get less than that (but that's only my personal hypothesis) And that's funny about your wife - you can tell her I'll be back to one video a week soon so you'll be spending less time watching me :-)
I wish the government would raise the yearly purchase limit on I-bonds and I wish they would use the "True" rate of inflation instead of the manipulated CPI-U numbers they currently use. I have a bad feeling the stock market is going to go wayyyyy down (currency debasement/stagflation/depression). I don't even want to think about nuclear war!
Thanks for such a great video. Question - I learned that gifting between spouse has no tax implication and a husband and wife can gift any amount to each other, without worrying about paying tax. Can you please confirm if it is true?
The gift tax typically does not apply between spouses, but there are exceptions from what I understand, so I'd suggest consulting with your tax advisor.
Fantastic advice.. thank you!!! My strategy: I bought a total of 50K of I Bonds this week (20K for spouse and I, and 30K for gifting). What I understand is that my I Bonds are giving me interest STARTING from April 1, and not my April 26 purchase date. This is unreal.. wow! Next year, on April 27 2023, my I Bonds will mature, and also the I Bonds held in the Gift Box. So, possibly I can not only withdraw my 10K, but also the 10K that has been gifted me in 2023 (assuming no other I Bond purchases that year). So my spouse and I can each withdraw 20K next April 2023. Since CD rates are slowly going up, I believe that CD rates will start to exceed I Bond interest rates next year, and at that time I plan to move my savings into CDs which will give me more flexibility and liquidity. A good idea for me? (Your video is one of the very few that talks about the Gifting Loophole, and you opened my eyes! Thank you again)
You’re welcome - let’s see where CD rates are in 2023! I hope you’re right! And yes, they start earning interest from April 1st, but you won’t see anything on your account until the 5th month. Last three months‘ interest always deducted in the first five years of purchase (the early withdrawal penalty).
Another good video. It is IMPERATIVE to register your recipient with yourself as a beneficiary POD (payable on death) first, prior to gifting. I wish this step had been more clear & was easier to follow/execute. We created a first portion of gifted bonds without beneficiary and can't fix this until 2023. First world problems, lol
Hi Jennifer, Thank you for helpful information. Like you mentioned I purchased I Bonds instead of purchasing CD's. I would also like to open an additional account that would invest in SP 500 stocks. I guess its better than keeping the cash under the mattress :) Thanks again for sharing your financial information.
Hey Jennifer, thanks again for the detailed video. Another follow up question, not sure if you have already explained this, just wanted to confirm if buying I bond as a gift (say buying 50k and delivering 10k each in the next 5 years) will impact the annual gift declaration limit of $16k. Appreciate your advice.
@@DiamondNestEgg I am a bit confused. If I buy $10k bond for myself this year, can I buy $10k bond for brother and $10k bond for sister in the same year? Which I plan to deliver bonds to brother in year 2023 and sister 2024 respectively (assume siblings not buying any for themselves). As I understand, gift limit $16k per donor per recipient , but I give $10k to each.
Yes - that is fine. If your sister and brother don’t buy anything this year, you can also deliver it to them this year - you need to wait five days after the purchase date to do this. Or you can deliver to both of them in 2023 if they don’t buy anything. You don’t have to wait until 2024 for delivery to your sister - is my point.
Hi Diamond - great video, I have a tough one for you. My wife and I each currently have $20,000 in our separate accounts listing each other as secondary owners. We also have $30,000 gifted to each other in our separate gift accounts listing ourselves as POD beneficiaries in our gift accounts. We also have each others login credentials so as long as each of us are living we are very flexible in account management should one of us become disabled. What happens to our gift accounts should one of us die? Do all the bonds in the gift account transfer to the beneficiary account immune from the annual purchase limitation? I.e. if I were to die tomorrow would the 3 x $10,000 in my gift account transfer to my wife's account as the gift recipient? What would happen to her gift account listing herself as a POD beneficiary on her gifts to me? Would all 3 x $10,000 also transfer to her account (3 x $10,000) leaving her with ownership of all bonds ($100,000)
This is the best video on I Bonds I have ever seen, period. I have a question and a couple of suggestions. In the video, you mentioned gifting your spouse $30,000 this year in I bonds. Was that in a single purchase or 3 separate purchase of $10,000 each? In another video, you indicated that spouses are exempt (subject to verification by the I bond purchaser's accountant) from the annual gift limit of $16,000 but gifting to anyone other than the spouse in an amount exceeding $16,000 would trigger the requirement to file IRS Form 709. Are children also exempt from this annual gift limit as long as the gift is initiated by either parent? In terms of suggestions, please do a video on how to create a living revocable trust using one's own SSN and buy I bonds through that vehicle. To me, this is akin to increasing the FDIC coverage limit by opening multiple accounts in different capacity with one's favorite financial institution. The second suggestion is concerning buying paper bonds via IT Refund. Here's the process I used which worked very well when I filed my 2021 return. 1) Estimated my total tax liability for 2021 during the middle of the year and adjusted my federal withholding so that the total withholding by the year-end would be as close to the total liability as possible. 2) Downloaded "IRS2GO" app on my smart phone 3) In the last week of December 2021, using the above App, I made an estimated payment of $5000 (I could have also made it by Jan. 15, 2022). One does not have to front-load the excess payment in the earlier months and give uncle Sam an interest free loan. 4) When I filed my return electronically, I filled out Federal form 8888 and requested $5000 refund in paper I Bonds and the remaining as a direct credit to my account. 5) Received my paper I bond in less than three weeks.
1) It was 3 separate purchases 2) Children are not exempt from this annual gift tax exclusion amount 3) The trust videos are already in the works 4) Thanks for the sharing the info about how you bought your paper bonds with your tax refund
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@DiamondNestEgg: When purchasing gift iBonds when the fixed-rate is more than ZERO, is the Fixed-rate permanently transfer to the iBond gift recipient? Thanks in advance !!!!
P.S. Thanks for your quality and clear presentations !!!!
Thank you Jenn, you answered my question. You're the best.
@ Diamond Eggnest
I try to watch all of your videos because I get most of the answers:)
Wish I find your videos earlier
Thank very much for your time for all the videos
Thank you Jen for the detailed as well as entertaining explanation. Jen, in your opinion, how much IBond investment amount do you think is enough before considering putting into higher interest investments.
Thank you for valuable information. For gift to spouse, seems like one can only buy 10,000. Do we have to wait till the next day or five days later to buy the next 10,000? Thank you.
No, there is no wait. This video walks through gifting in more detail: ruclips.net/video/bSoZJJypSAQ/видео.html
With a gift, when does the one year minimum hold period start? When the gift is purchased or the day it’s gifted ?
This video explains how the gifting process works: How To Buy More I Bonds in 2022 | I BONDS FOR COUPLES (Buy MORE Than The Annual I Bond Limit)
ruclips.net/video/bSoZJJypSAQ/видео.html
Do I bond gifts accrue interest while in the gift phase before it is delivered?
Here's the video on how the gifting process, interest, etc works: ruclips.net/video/bSoZJJypSAQ/видео.html
@@DiamondNestEgg I called TD. They changed the rules. You cannot purchase gifts for SSN that already purchased I bonds for this year. You can only do it if there SSN did not reach that limit of 10K per calendar year. So the gift option is really not that helpful to someone that wants to capitalize on the 9/62% rate.
@@viselchakforyou What we've seen & heard in the community from the recent glitches is that what you get on the phone is not always cut & dry nor consistent. As I've mentioned in other gifting videos, what's allowed with regards to gifting is stated clearly on TD's "updated" website: ruclips.net/video/WPcQrYLz1rc/видео.html - as well as in the Electronic Code of Federal Regulations governing Savings Bonds: www.ecfr.gov/current/title-31/subtitle-B/chapter-II/subchapter-A/part-363/subpart-C/subject-group-ECFR40621f7738442c1/section-363.52
Having said that, everyone's financial journey is different - folks should do what best suits their individual circumstances & what they're comfortable with.
@@DiamondNestEgg Thank you! I will call them again tomorrow. The glitch in the system still exists for me and I am unable to purchase gift ibonds for my spouse because the system looks at her contribution for 2022 and disregards "gift" purchase, contradictory to their instruction video how to purchase gift I bonds.
Forgive me but it takes me a bit more clarity to grasp these concepts. When you say you’ve gifted each other 30k for 2023, 2024 & 2025, are you actually paying now for the future? Are you also saying that you are locking in current rates at the time of gifting? I’ve purchased binds for 30 years. I transferred a chunk into my son’s name a few years back. I’m 67 with very little for retirement so I need to really understand these rules. Thanks so much!
This gifting video should provide more clarity: ruclips.net/video/bSoZJJypSAQ/видео.html
love the video! I just recently got involved with I Bonds and I wish I would of known about it long ago! Just subscribed to the channel! Thanks for the great info
Hi Jennifer, I purchased 10k last year for my wife and it is siting in my gift box account but it is now worth $10,200. Can I deliver the full amount including the interest this year? You are simply the best! Thanks for all the videos.
Based on my understanding, you transfer the principal (so in your case $10K) & your recipient receives the principal + interest.
Can i cash an i-bond right after receiving it, it was purchased with in the 5yrs period?
If you gift more than $16k in a year to someone don’t you have to pay a gift tax over that amount?
Typically not if you gift to a spouse (although there a few exceptions): www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes
If you're gifting others, I talk about this towards the end of this gifting 101 video: ruclips.net/video/bSoZJJypSAQ/видео.html
Oh-oh. Is there a problem since I have exceeded the annual delivery gift amount to one person? Through the years I have sometimes purchased (thru Treasury Direct) the maximum dollar amount allowed I Bond as a "gift" for my husband. This made sense as I was purchasing one for myself anyway and it would save him from having to do it. I wasn't aware that receiving I bond "gifts" was limited: frequently I "delivered" to hubby's TD account 2 years' maximum purchases (e.g., $20,000 in 2013) in a single transaction. None of these transactions was rejected and hubby's current holdings list all of these bonds. All of his bonds in TD were gift bonds -- all issued in separate years -- and his TD account lists current values that include accrued interest. Do you think there will be any problem when he eventually attempts to redeem these bonds?
I can’t say because we’ve never come across such a situation, but you can either call TD to see what they say or just wait and see what happens - it’s really up to you. Keep us posted on what happens - in case another supersaver finds themselves in the same situation.
@@DiamondNestEgg Need to think about whether I should call... but will keep you posted. And hubby will start making his own I bond purchases in 2023.
Can an LLC's or Corporations Gift I-Bonds specifically to LLC owners/members. And can members/owners gift I-Bonds to their Corporation or LLC? Thx!
No - gifting can only be done between individuals
If I purchase $10,000 of I bonds at the end of October, what would be the interest that I earn for the next 6 months? It is quite confusing. Thank you for your videos!
This video explains how I-Bond interest works in detail: I-Bond Interest Explained: When Does It Show Up & What's The I-Bond Calculator Formula?
ruclips.net/video/9hfHoSijJEk/видео.html
What happens if I die with I-Bonds in my Gift Box? What if there's more than $10,000 for one individual?
Please see pinned comment at the very top of this video:ruclips.net/video/bSoZJJypSAQ/видео.html
PLEASE VERIFY- A LITTLE COMPLICATED- my wife and I bought 20k in IBONDS in December 2021 and January 2022 - our annual limits - then gifted 20k - a piece to each other in August and October 2022 to deliver this year and 2024 - so we need to deliver the August 2022 gift by December this year? Or I will be stuck having to wait until 2024 to deliver the August 2022 and the October 2022 gift until 2025? HELP!
This video answered so many questions for a new bond buyer. Thank you for the great work! The videos are professional and exceptional!
But if i buy 100k of i bonds and then pass away, isn’t that a loop hole in the delivery limit?
Point C: www.ecfr.gov/current/title-31/subtitle-B/chapter-II/subchapter-A/part-363/subpart-C/subject-group-ECFR40621f7738442c1/section-363.52
What happens when you gift your spouse 10000 dollars and your spouse gifting you 10000? Do i have to claim that as regular income and pay taxed on that or do we just pay taxes on the interest on the 10000 dollars?
This video explains gifting basics in greater detail: ruclips.net/video/bSoZJJypSAQ/видео.html
❤
Long story short I only found out about I bonds a few days ago and stumbled onto your videos as I was researching them. It turns out, based on my research, (including your videos), I have already done EXACTLY what you said you are doing 3:15 in. For the folks that really get this "situation", enough said. But more importantly I appreciate the detailed presentation with excellent clarity, and emphasis on what forms a decision here for each individual. Kudos for finding a unicorn here for all to which it may apply, and the extent of that application for each individual. But more importantly you are emphasizing the realities and constraints of longer-term planning which is ultimately the most important thing to be done as this unicorn, and eventually all others, ride off into the sunset. Thank You!
You’re welcome!
You have a very informative style and presentation method. Referring your content to others. Thank you
Thanks - I appreciate it!
I think the inflation is reaching it's plateau. After that isn't the I bond yield would go down sharply (assuming the fixed factor stays at 0). Isn't too risky to plan gifting for 3 years as you planned.
It works for my individual circumstances - yours & others may be different
What is the difference of buying into the ibond in July vs October.
This video section here should explain how this works: ruclips.net/video/adzmox__2zM/видео.html
@@DiamondNestEgg thank you
Thanks for this content!
You’re welcome!
Hi Jennifer. My hubby accidentally delivered his I-bond gift to me just five days after he purchased it. This means that it will be refunded to him in 12 weeks because I have already purchase my own I-bond of 10K, right? I cannot believe this has happened.... Is there any way to undo the delivery? T_T
Have you gotten an email from TD yet? If not, you can try calling them - but wait times are really long right now
@@DiamondNestEgg Nope, they haven't sent me any email about it. I don't think the TD website knows that such a delivery violates their rule.
I personally do not feel locking otherwise good liquid money into I-bonds as gifts for each other is a good move. Even if you get a high 8% in the first 6 months, it may not be the same in subsequent years. Instead, I can put my money in premium dividend equities at bargain prices now, receiving a 4-6% dividend plus unlimited upside for the long term with high liquidity and a lot less work.🤔🤔
Thanks for sharing - everyone's financial journey is different
So if I purchased $10K in Ibonds for myself back in April 2022 and my mom wants to gift me $10k in ibonds this month to get the higher 9.62% for me, she can purchase them, BUT can't deliver them to me until January 2023 at the soonest because I already maxed my 10K annual this year, correct?? And IF she delivers them to me in January 2023, does that mean I can't purchase any Ibonds for myself in 2023 because of the 10K max which was delivered from my mom in January? Hope this makes sense!
As we understand it, that is correct
Thank you so much for your entertaining and informative videos. My wife and I were planning on each buying $10,000 in I Bonds to take advantage of the 9.62% return right now. Next year we were planning on buying another $10,000. After watching this video it sounds like we should buy next years planned purchases now also to lock in the 9.62% (as gifts) and then gift them on January 1 next year rather than waiting until January 1 to buy them at probably a lower interest rate.
Have you seen this latest September update video on buy/ gift now vs later - if not, check it out. It may help inform your decision on timing: ruclips.net/video/vvKJr1ric-s/видео.html
I’m buying 3 years worth now (for 22, 23, 24) will deliver 2 in January 2023, 2 in January 2024 & cashing all 6 of them in January 2024 (assuming inflation is back down to 2-4% as I’m expecting). I don’t think it’s wise to buy more than that unless you really think inflation will still be high in January 2025.
Hi, Jennifer, love your videos. Here's a question: Can I gift an I-Bond from my personal account to my revocable living trust? And vice-versa, can I gift an I-Bond from my RLT account to my personal account?
Thanks - gifting can only be done via individual/ personal accounts, not between entity accounts (e.g., trusts, businesses, etc)
@@DiamondNestEgg Thanks for the speedy reply. Next question: I could buy a gift ibond(s) for an elderly person in my life, name myself as beneficiary, never complete the gift (in fact they wouldn't know there was a gift) but when they pass away I could transfer the gifted ibonds to myself?
Hi, I recently discovered your videos and really appreciate your sharing your knowledge about purchasing and gifting I Bonds! In this video you discuss the form used if a recipient dies before the purchaser has transferred a gift bond to them. Can you tell me what happens if it is the purchaser who dies before transferring the gift bond to the recipient?
From what I understand, the recipient would need to contact TD & they will walk through the process & paperwork
@@DiamondNestEgg Thank you for replying. BTW, I've always considered savings bonds to be my emergency fund. Easy to redeem after holding for a year. But with the high rates they're earning now, I'll use alternative cash sources if the need arises.
This was such a fantastic video. You answered all my questions. Thank you thank you 😊.
Can you cash out a gifted I bond the year you receive it or do you have to wait a year after receiving?
An example is easier to illustrate this. As we read it, if your gifter bought you an I-Bond in Jan 2022 & delivered it to you today in Aug 2022, the earliest you could cash out would be Jan 2023.
Such good advice, we decided on gifting for 2023 and 2024 if the rates next May are significantly lower. If not then we will buy our max and hold the $20K of Ibonds we bought each other.
Sounds like you have a plan!
Still unclear. If you gift 30k to someone and don’t deliver it, if you die what happens if the amount gifted exceeds the amount the giftee can buy i bonds for a year?
I think you’ve asked this several times already, but here it is again. Please see the pinned comment at the very top of this video: ruclips.net/video/bSoZJJypSAQ/видео.html Point 2- when you go to the ECFR link, it’s point c.
You are awesome, you produced the best ibond videos online. Thanks. I hope you can do some 529 videos too in the future.
It’s are on the long list - is there anything specific you have questions about or do you just want to learn more about 529s in general?
Still not clear - wife and I purchased our 10k limit in 2022 - we can buy another 10k - today - and gift it to one another in 2023?
To be precise, using your example, you can „gift“ one another $10K in 2022 and „deliver“ those gifts in 2023. This gifting video should provide more clarity:
ruclips.net/video/bSoZJJypSAQ/видео.html
Can you do a video on treasury bills as a way to build up and store an emergency fund? Looks like the rates for treasury bills is double that of CD’s and high yield savings account.
👍 we‘ll add this onto the list
Thank you for the detailed video. I just tried purchasing a gift from my account for my spouse and it gave me below error. My initial purchase of $10k was 6 months back and I also made sure that I added my wife and checked the box that states "This is a gift". Did I miss something ?
Annual limit exceeded. Please edit the purchase amount or edit your pending purchases under ManageDirect, if applicable, and try again.
Just posted this update video: ruclips.net/video/MChvdjJJH1k/видео.html
I have 1 Revocable Trust, it includes 3 separate properties. Can i buy 3 I Bonds of $10000.00 each? Looking forward to hear fr you.
As we understand it, if you have one revocable living trust, you can buy $10K per year currently for that trust. Here is the how to buy I-Bonds with your trust video: ruclips.net/video/7OWgbccetv8/видео.html
Thanks for great videos as always Jennifer. If I purchase i bonds for a minor but still sitting in my gift box undelivered. Should those ibond count as my asset?
Hi there. As we understand it, it would be considered your minor‘s asset even if undelivered/ held in your gift box.
Does I Bonds start to mature in the gift box?
If I purchase them for my parents now, and give it to them as retirement gift 5 years from now, would they be able to cash it out?
Here’s the gifting video that‘ll walk you through all the details:
ruclips.net/video/bSoZJJypSAQ/видео.html
is'nt there a limit of $16000/yr when gifting. Is that different for spouses? what are the eligibility requirements?
Yes, it's different for spouses. Here's more info from the IRS site: www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes
Thank you so much for the video, this is the best video on ibond on youtube. You mentioned gifting your spouse $30,000 this year in I bonds and it was done in 3 separate purchases. Is there difference between doing it on one $30,000 and 3 $10,000 purchases? Thanks in advance.
The maximum amount per purchase is $10K
@@DiamondNestEgg Meaning that you could purchase more than $10K gifting to the same person in the same year? Just need to make multiple $10K purchases, does that sound right? Thank you in advance.
@@yuhuima8332 As we read the Electronic Code of Federal Regulations, yes. But I would highly suggest watching this video first for the caveats & limitations if you are thinking of gifting more than $10K to the same person.
Can you look into joint ownership, "WITH", and make a video on that?
It‘s on the list for May
Let's say I buy $50K iBonds for my adult child this year intending to give going forward and I die next year. What happens to delivery of those bonds. Do I need to manually "deliver" the bonds to the recipient? How does an estate handle it?
There are specific forms to fill out - your executor would need to contact TD directly for specific instructions. Here’s more info from TD: www.treasurydirect.gov/indiv/research/indepth/ebonds/res_e_bonds_eedeath.htm
Me and my wife bought 10K of I Bonds for each and additional 20K each as a gift for each other to be delivered in 2023 and 2024.
My question is since it crossed the annual gift limit of 16K, do we need to pay gift tax?
As it reads from the IRS website, gifts between spouses are excluded. Here's the IRS link for reference: www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes
I'm not a tax attorney though, so if you have further questions, would suggest reaching out to one for 100% clarity.
@@DiamondNestEgg Thank you, per my research, gifts between spouses not taxable.
I am going to purchase $10000 more as gift and the total gifts will be $30000 this year.
Thank you.
@@sudheerk82 Nice. I was going to only buy 2 gifts at $8,000 each but I guess I’ll buy the full $10,000 now. Thanks for asking. I would do 3 years worth but I’m not confident inflation will be high enough in 2025 & I don’t want $20,000 locked up only earning 2% for a full year. With buying $20,000 in gifts each you can cash them out along with your $10,000 in January 2024 & the 3 month penalty will likely apply to a much lower rate.
@@JC-li8kk I agree I-bonds yield will come down in 2025 but we dont need to keep whole 2025. We will deliver the gift in Jan 2025 and we can cash it out right away.
I have a question… if I buy a gift ibond for 10k today will it start earning 9.62apy until I deliver in jan next year and does the 1 yr start today itself?
This video has all the basics on how I-Bond gifting works & should provide more clarity: ruclips.net/video/bSoZJJypSAQ/видео.html
Great video on gifting. So I set up a $10,000 gift to a relative. It is still in my treasury gift box. I intended to transfer the gift it in 2023 after the 12 month holding period expires. But now, I changed my mind about this person. Can I now change the name of the recipient to another person? Thank you.
As we understand it, unfortunately not
Hi Jennifer, thanks for your excellences video's, I'm retire now, and I have a IRA account, can I rollover by buy I Bont? Many thanks
Unfortunately not. You can only buy an I-Bond via TreasuryDirect. In case you’re interested, this video shows you how to open a TD account and buy your first I-Bond: ruclips.net/video/adzmox__2zM/видео.html
Ok, I bought 2 ibonds for this year. My wife and I also gifted to each other the maximum $10K each to be gifted on Jan. 1 2023. We have no intention on needing this money, but I'm curious. Does the 1 year holding period on a gifted I bond start only after the gift is delivered? So when we gift to each other on Jan. 1, 2023, We can't touch until Jan. 1, 2024 I assume??? Great video's, should be taught in school, instead of a lot of other shtuuuffff!!
As we read it, the one year holding period starts from the purchase date (not the delivery date).
@@DiamondNestEgg Thank you yet again. Keep up the outstanding vid's!!
I opened a account on Treasury direct, they put a hold on the account because they want the account authorization form 5444.
My question is why do they do this, and is this normal procedure.
This usually happens if they can't verify the information - I don't know the specifics but it has happened to a few folks on the channel.
Thank you
Hi Jennifer!
Loving your videos! I am a new I-Bond investor. I will subscribe and keep watching your videos if you help to keep us informed when I-Bonds no longer make sense. I was also just watching another video where guy was saying, "Only buy I-Bonds in April and October" is that so? I didn't know there was a best time to buy I-Bonds. May be another video for you :) Thank you!
Thanks - and yes, of course I will give updates about what we’re doing with our I-Bonds! I don’t know the video you’re mentioning, but can only imagine the author is implying April & October make the most sense for new purchases because it is when you’ll know what you’ll earn for the next 12 months. And I would say - April, May, Oct, Nov & Dec months are „big“ I-Bond months here - but the best time really depends on your financial circumstances, view on inflation & simply when/ if you have the money to buy. Stay tuned my friend & spread our I-Bond love to your friends & family!
I watched the same video, buy bond in October to lock interest 9.62% from May, and you can forecast interest that will happen in November from the inflation number in October. Meaning you will earn12 months of interest bond that is predictable.
Hi Jennifer, Thanks for the video. Is there a limit on the $$ I can buy as gift for non-US citizens.(people on employment visa). ?
Here’s more information on who can own/ who you can buy I-Bonds for (as a gift) - from the TreasuryDirect site: www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_ibuy.htm
Hello Ganesh, we are also on H1. Me and my wife bought 20K each as gift for others and these to be delivered in 2023 and 2024. Do you know if we need to pay gift tax?
We purchased 20,000 worth i bonds between two of us. We also gifted each other $20,000 each.we like to purchase $20000 more as a gift but it was denied. Treasury will refund our money. Where did we go wrong? To day we tried to purchase a gift but in confirmation it does not show as gift purchase, so we may get money back, need help.
We’ve seen/ heard of 2-3 cases similar to yours. It turned out they had forgot to check the box that says „this is a gift“ on the registration.
Hi Jennifer, my dad and I just started learning more about I-bonds and came across your helpful videos. I recently bought 10k of I-bonds and within same month My dad gifted me and delivered 10k to my acct. Will I get penalized or what will happen? Can you point me in the right direction?
Have you gotten a message from TD? If not, what I would do personally is just wait. I've heard of folks that got an email saying they went over & their money would be refunded, BUT I have also heard of folks that got this email, never got their money refunded & then the gift just appeared in the gift box a few months later.
Jennifer, I absolutely love your videos. I have a couple of questions about gifting an I-Bond. (1) Can I give an I-Bond to my fiance? (2) Assuming the answer to my first question is "YES", If I have already purchased a $10000 I-Bond for myself in 2022, can I now give a $10000 I-Bond to my fiance also in 2022? Thanks.
Thanks - and the answer is YES to both. Here’s the video on how to do this: How To Buy More I Bonds in 2022 | I BONDS FOR COUPLES (Buy MORE Than The Annual I Bond Limit)
ruclips.net/video/bSoZJJypSAQ/видео.html
Hi Jennifer, I can help answer the question you had concerning how TreasuryDirect well return your money if you exceed the $10,000 limit. I exceeded the $10,000 limit this year by mistake. I Bought $10,000 of eye bonds twice
I received an email from TreasuryDirect saying that I had exceeded my limit and they were going to re-deposit my $10,000 back in the bank from which you came. The only catch wise it was going to take 10 or 12 weeks before this will be accomplished.
Thanks for this - very good to know!
@@martinwilliams4561 Thanks for sharing this with us. I am wondering will they deposit money that come from a gift to you or to the person that has bought the gift. Or is it possible that the Ibound go back to the original gift box?
@@najsp4736 This was not a gift and was not in the gift box. I mistakenly bought it for myself after I had already purchased and I Bon. So I purchase two in the same year and TreasuryDirect emailed me to tell me I cannot do this and they would return $10,000 back to the checking account from which it came
I made this mistake, even following her great walkthrough. I got the email saying they would return it to me. But I also messaged treasury saying I made a mistake, I wanted it to be a gift. Lo and behold, they fixed it. No message. I logged in and it was changed to gift to spouse pod me.
I tried to add $20000 gift to my wife. The app would only allow $10000at one time. Do I have to purchase 2 seperate $1000 gifts with my husbands name on them.
You need to make two separate purchases.
My spouse purchased 10K for himself this year, I then purchased a 10K gift for him, with the intention of delivering it in a future year. However, I realized two weeks later that I made a mistake---I ended up delivered it to him. What happens now? Will I be penalized? What happens to my 10K? I'm curious as to why TreasuryDirect allowed me to deliver it to him even though he reached his purchase limit for the year.
Hi. How long ago did you deliver it to him, did it show up in his account and/ or did you get an error message/ returned funds email from TD?
@@DiamondNestEgg I waited until after the 5-day holding period, and delivered it. It currently shows in his account. And no, I did not receive any error messages. It appears that everything went through solidly.
@@hoatruong7557 I haven't come across this issue yet, but I'd say you could do one of two things: 1) just wait & see what happens or 2) call TreasuryDirect, explain to them your situation & see what they recommend. There seem to be some "glitches" in the TD system - so maybe you both got lucky this time around. Either way, let us know what happens! I'd be curious to know if your husband ends up being able to just keep his gift.
@@DiamondNestEgg I'll do that. Thanks!
This is what I was told this morning. A team prints out a list. Accounts with excess purchases/deliveries will be notified by email and a refund will be processed. There is no penalty. Whether it was a purchase that pushed the purchaser over the limit or a delivered gift that pushed that recipient over the limit, the refund process is the same, and it could take up to 16 weeks. If for some reasonTD does not issue your refund (i.e. it's your first offense), then consider yourself lucky, as they've decided not to do anything about it and to just let you keep the i-bond. In the meantime, you could continue to buy i-bond gifts and keep it in your gift box.
Enjoy your videos. My wife and I bought each other gift bonds in April. Our plan is to transfer those gifts in January so that 7/12 of minimum holding period will already be past. Then in January if inflation is still running hot we can buy more gifts in January.
1. Can I purchase I Bonds for my nieces and nephews? If so, through gift or just open a kid’s account?
2. Can I add a beneficiary to bonds I purchased for myself?
You can purchase it as gifts, but you will need their SSN. If the parents have set up minor-linked accounts for them, you can then "deliver" the gifts directly to your nieces' & nephews' minor-linked account numbers. If not, you will have to wait until the parents set them up or when your nieces & nephews turn 18 & set up their own TD account to deliver the gifts.
Here is the video for the parents to set up a minor-linked account for your nieces & nephews: ruclips.net/video/YlE3Uxoeah4/видео.html
And here is the video on how to buy I-Bonds as gifts: ruclips.net/video/bSoZJJypSAQ/видео.html
Thanks for your valuable advice. Please help me understand - what happens when gifter (spouse) dies and the money is sitting in his gift box ? Who gets the money in that case ?
Check out the pinned comment in the very top of this video - it explains this in detail: ruclips.net/video/bSoZJJypSAQ/видео.html
Another great video. Regarding the $10k annual limit, if I purchase a gift of $10k this year, and deliver it 12 month later, it will be worth $10,854. Does this count as within the limit ($10k) or out of the limit ($10,854)?
Within limit because the transfer is based on the face value of the bond
My spouse and I have followed your example and bought each other gift bonds for 3 more years. Can I buy a gift for our trust and give it to the trust next year? I have already deposited 10K into our trust for 2022.
As we read it, the answer is no. Gifting can only be done between individual accounts - not entity accounts (e.g., trusts, businesses, etc.)
Does each gift collect the full interest until it is distributed to the recipient, possibly over multiple years, or does interest begin only when the gift is delivered to the recipient? Thanks.
Hi. I explain all the details on I-Bond gifts in this video section (e.g., interest, minimum holding period, delivery restriction): ruclips.net/video/bSoZJJypSAQ/видео.html
Your video is informative. I and my spouse are planning to buy ibond. But my wife doesn't have a bank account and we are planning to use the same bank account, which I used for my treasury direct account. I hope we can use the same bank account for two different treasury direct accounts?
You can
@@DiamondNestEgg Thank you. Also can you please share what is the expected interest rate(rough number, if not exact) on ibond in Oct 2022?
@@tomharry1915 No one knows at this point unfortunately
@@DiamondNestEgg But at the step of entering the bank account details for my spouse's treasury direct account, portal also asks for the "Name on the Account". Now since the bank account belongs to me, so it would be my name in this field. So would there be any issue due to this, from Treasury Direct's side? Also do you by chance know anyone, who might have done this before?
@@tomharry1915 I don't know the answer to this or anyone that has done it. I'll post to the community page & see if we get an answer.
If I put in the limit of 10k on the 1st of may, will my interest be 9% of 10k which is $900 / month or is it a one time interest at the end of the 6 months.
The projected 9.62% is on an annualized basis - it is not monthly. I'd suggest watching this video section for more details on I-Bond interest, limitations & restrictions: ruclips.net/video/adzmox__2zM/видео.html
@Diamond NestEgg, quick question, If I and my spouse both have bought the I-bonds of $10k each today. Can we gift another set of I-bonds of $10k to each other next week alongside being mindful of not crossing the $10k limit of each year.?
As we read it, yes. Please do follow this video tutorial though - we‘ve had 2-3 people with issues & it was typically because they didn’t go through the steps properly (in which case your transaction will not process OR you will get a msg saying you went over your annual limit): How To Buy More I Bonds in 2022 | I BONDS FOR COUPLES (Buy MORE Than The Annual I Bond Limit)
ruclips.net/video/bSoZJJypSAQ/видео.html
@Diamond NestEgg, quick question, if I buy a 10K gift for my spouse and deliver to her next year to max her limit for 2023. I can withdraw the 2022 I-bonds in 2023(without last 3 months of interest), but when the other person could withdraw the 2023 delivered gift since that amount has already got the interest for an year in my account and now in 2023 its delivered to my spouse so she need to wait until 2024 or she can withdraw right away in 2023?
Hi there - so using your example, you can “deliver” the 2022-purchased I-Bond gift to your spouse in 2023 and she can “withdraw/ redeem/ cash out” in 2023 once delivered. Just want to use the TD terms for clarity.
If you gift each other $30,000, it will actually take 4 years to deliver the gift completely, because of the interest that accumulates on that $30,000. Right? I'm trying to figure out how much I can gift that can be completely delivered next year, including interest. I'm thinking $9350 for sure, and probably $9400, unless the November rate is higher than 9%.
As we read it, delivery is based on the face value
It’s only going to take you 15 months to cash $60,000 in i bonds if each of you were to buy $10k limit, $20k gift today. You could cash all of them in January 2024. May be smarter to buy two $8k gifts to avoid gift tax ($16k).
Question: I bought my first I bond in November @ $10k. Is my limit set by anniversary year or calendar year?
Calendar so 1/1 through 12/31
@@DiamondNestEgg thank you, I'll plan to make a purchase in May so I'll have 20k earning the new rate, right?
Correct
These are my questions today.
Can LLCs buy I-Bonds?
Can a trust or LLC be the beneficiary?
Can I gift I-Bonds to multiple LLCs?
What happens if there is deflation?
Or interest dips to zero.
1) Here's the video on how to buy as an LLC: ruclips.net/video/4f-ZIoiOFt0/видео.html
2 & 3) No
4) You keep the face value + whatever interest you've earned previously. Detailed explanation in this video section here if interested: ruclips.net/video/bIq8XXo4Vfo/видео.html
Great video, one topic not addressed is taxes on I-bonds. Understand if you keep an I-Bond in a gift account for five years a major caveat is; the bond will accumulate interest that can not be included yearly by anyone on a federal tax return. (I-Bonds are exempt from state tax) If the recipient received the gift after five years and decided to cash the bond, all the interest would be applied to that year. Although somewhat time consuming, it may be prudent to buy ten one thousand dollar bonds instead of one ten thousand dollar bond. I certainly wish I had done this a long time ago.
In the late 90s and early 2000s credit card offers abounded, at the time offering 100,000 airline miles after spending $10,000 or more in the first statement period. My wife and I took advantage of multiple offers, accumulating over a million frequent flyer miles, simply buying I-Bonds with credit cards. We initially intended the bonds would be used as a tax free education fund for the benefit of our son; but this proved to be infeasible after he was awarded a full scholarship to college. For many years after we kept these bonds as a rainy day emergency fund and fortunately never had to tap into it.
I-Bonds issued between 1998 and 2002 offered guaranteed interest rates for the life of the bond between 3.4 and 3.6 percent, combined with the added inflation guard, they have steadily outperformed 5 year CD rates for twenty years, or more, and we never saw a reason to cash any of them. Returning more than 10.5% presently and in excess of 13% starting next month, our I-bond portfolio will likely generate more than $40,000 of taxable interest income this year.
I would offer this word of caution. Pay all Federal taxes on a yearly basis! I never imagined at the turn of the last century we would still have these today and unfortunately I did not take my own advice. I- bonds are issued with a thirty year maturity, ours will be coming due in the not too distant future, and while I really should not be complaining, we are going to pay the tax man rather handsomely whenever we surrender these bonds
Thanks for the feedback & congrats on those 3.4% and 3.6% I-Bond fixed rates from those early days & that full scholarship for your son! I'd love some hints if you have any on that last one - we could use them!
Just a few things things to note regarding taxes:
1) You do not have to gift the recipient the full amount of the I-Bonds you purchased for them, so say that you bought $10,000 as a gift for your wife/ son some years back, you can gift just a few hundred or a few thousand - you don't have to gift the whole thing. And even if you do, when (s)he redeems the gift bond, (s)he can still choose to redeem it in full or just partially, depending on how the interest earned upon redemption will impact his/her tax rate for that year - since only the interest earned on the amount redeemed will be taxable at a federal level.
2) Paying taxes on an annual basis is very complicated - for many reasons. That's why most folks choose to pay upon cashing out.
If you choose to do it annually instead of upon redemption, you have to do it for each & every Series EE, E and Series I bond that you own & this involves a lot of work & effort because:
First, you don't get a 1099 until you cash out, which means that you need to calculate the interest earned every year yourself for each bond that you own.
Second, TD does not offer monthly or annual statements which means you have to go in and print out your account values at regular intervals to track how much you're earning - again for each bond that you own
Third, you'll need to track over the years everything that you've reported to the IRS and then make the appropriate deductions when you cash out to make sure that the appropriate amounts are deducted from the final 1099 that you get - otherwise, you'll be paying taxes twice
There are other considerations as well (e.g., what do you do with the early withdrawal penalty in the first five years,) so for those that are interested in doing this, here's the IRS publication for more details: www.irs.gov/pub/irs-pdf/p550.pdf
Having said all this, for folks that are in a much lower-tax bracket (say minors for example) - it may make sense, but it's something everyone needs to decide on for themselves - whether all the additional time & effort might be worth it for the tax savings achieved.
Wow! Having only started paying any attention to bonds as i neared retirement it is amazing to hear about your good work and any bonds that pay this high Rate! Wow and well done. Don’t let taxes run your investments, is what I have heard, so I think you have a win even if the taxes bite.
Will making the gifter a co-owner on the gifted IBonds count towards the gifter's annual purchase limit in the year the gift is delivered?
My case: I purchased 10K of IBonds for my wife & they're sitting in my Gift Box in TD. She is listed as the sole owner (Forgot to put myself as beneficiary :( )
If I registered this 10K gift as my wife & I co-owners, when I give them to her in Jan., 2023 would the bonds' co-owner status make 5K count towards my annual purchase limit? I thought so & that's why I made her the sole-owner. Thanks.
You can't make yourself the secondary owner on a gift bond at the time of purchase. After delivery to your wife though, she can add you as the secondary owner. The limit applies to the SSN of your wife, to the primary owner - not to the secondary owner or the beneficiary.
Whoa... 3 additional years? Definitely concerned about the state of the US if inflation stays at this level for four years.
That’s our perspective - others might see it differently.
If the treasury fails to pay, it won’t matter how much money you have saved up, it’ll all be worthless. So why not. Even if you bought gold, the government would devalue it or outlaw it. Read about the Great Depression, gold was outlawed and people were forced to turn it in to the government and heavy penalty if caught bartering with it. Gold Reserve Act of 1934.
@@DiamondNestEgg Makes total sense, thank you for sharing your perspective here. It's valuable.
Thank you once again for this nice video.
Can you please create a short video on how to redeem(cash) electronic ibonds, showing what the Treasury Direct portal asks for while redeeming.
I am sure there might be a handful of steps, following which the ibond would be redeemed and the money would be transferred back to the bank account. But it would be very helpful for someone new to ibonds, to know what to expect after 1 year when redeeming them. Such as, if there are going to be any surprises which portal gives during redemption etc. Thanks.
If the video would take some time to be prepared, can you please share any details here, around what redeeming/cashing of ibond on portal looks like?
Thanks for the feedback. The video is on the list - I can only do this once my bonds hit their 12 month minimum holding period.
Hi Jennifer. Is it better to break up the $10k into two groups if you predict the inflation is increasing so you can purchase $5k before April and another $5k after April so that way you’ll get higher interest rate ? It’s kind like dollar cost averaging So you are any issue with this approach ?
That really depends on your financial circumstances (e.g. what are you earning on that $5K that you’re not putting in now). Remember, you still get the higher November rate if you buy now, assuming it is higher in November as in your example, you just get that rate six months later.
If my husband and I buy 10k I bond gift for each other this year and deliver to each other next year ( assuming that we’re not buying I bond next year). Will we be able to cash out right away after we got it or we have to wait for the whole calendar year to cash out?
I talk about it in this video section here: ruclips.net/video/bSoZJJypSAQ/видео.html
Thanks for a great video.Undelivered I-bond count toward whose asset, donor or recipient? Can a person delivered I-bond to several recipients in the same calendar year? Thank you.
An undelivered I-Bond is still considered “owned” by the recipient as it is in their name, but if you’re speaking specifically about financial aid for a child (as an example) - the answer is I’m not sure. Here’s what I mean - if my sister were to buy my kids I-Bonds as “surprise” gifts but doesn’t tell them about it, they wouldn’t be able to include that as an asset on their financial aid application. And yes, as we read it, you can deliver to multiple recipients as long as you stay under the $10K annual limit & the recipient(s) haven’t purchased anything for themselves in that year.
@@DiamondNestEgg Jennifer! you read my mind. Yes, I am refer to financial aid for a child. I am admire you as one of a very smart and intelligent woman/mom. Thank you for clearly response, it helps me a lot.
Can you gift an entity? My spouse and I both have small businesses, so that could be a way of buying more ibonds right now, which would be a really good day to do so (8.5%)
Just to clarify: Buy a gift for my small business in my personal account. I know entities can't buy gifts.
You can’t unfortunately - only individuals
Oh, well. Couldn't hurt to ask. Thanks for the info!
In looking at the historical i-bond interest rates since inception, i can see why someone would not be worried about buying a whole lot of them...am i missing something? oh, and btw...i enjoy you and your videos!!
Thanks - I think it really depends on your stage of life, risk tolerance as well as the returns you think you might be able to get elsewhere. Everyone’s situation is different.
Hi, Do we get a 1099 from Treasury Direct at end of each year? Or we get the 1099 interests after we withdrawal from the account? Pretty much I want to know when do I pay my federal taxes on the interests earned from Ibond?
When you redeem at the end - some (not many) people choose to do it every year, but that gets really complicated - you’d have to speak to your tax advisor if that’s what you decide to do.
Thanks! So if I don’t redeem my interests every year. I won’t receive a 1099 to get taxed.
Correct - only at redemption
Thank you for great job you are doing.
If I buy gift I bond for my wife that will be delivered in future , can I be co owner ? I prefer to be co owner instead of beneficiary.
You have to be the beneficiary. Some folks have tried in the past & it didn’t work with co-owner. Also, I would imagine if you made yourself co-owner, one could make the argument you’re technically gifting yourself so it’s not really a gift to your spouse.
Thanks !!
Can I gift ibond to a minor, whose account is a minor linked account in my treasury direct account? And if I can gift, how do I do that? And also how to deliver that to the minor? Because the minor would not have his/her own treasury direct account, to receive the gifted ibond into.
I have heard of folks doing this, but according to one of my conversations with TD, it's not something they "encourage". Here's the gifting tutorial if you decide to go ahead with it (it's for a spouse, but you can gift anyone with the instructions we've provided): ruclips.net/video/bSoZJJypSAQ/видео.html
And your child would have a TD account number if you set up a minor linked account for them. Go to ManageDirect & click on Access My Linked Accounts. Next to your child's name is their account number.
We love your videos!!! New to all this. Purchased my yearly limit last week. First time ever. Then my Fiancé set up account and purchased $3000. Once we heard about gifting. I went ahead and purchased $7000 as Gift to her. We sat down together and followed your directions. Gift. etc. even beneficiaries. Unfortunately today I received the dreaded email my $7000 was being refunded because I reached my limit. I know I checked off Gift. Obviously calling is a 2 hr hold. Do you think there’s anything I can do or suck it up and do over when the money is refunded 🙁
One question so that I understand everything correctly - if your fiancé just purchased $3K, why did you purchase $7K as a gift for her? She could have just bought another $7K for herself in her own account given that the annual purchase limit is $10K.
So if you do decide to try gifting again, keep these things in mind - as we understand it, these are the three issues that usually trip folks up:
1. Be sure you check the "This Is A Gift" box - just double/ triple-check this part.
2. Make sure when you purchase the gift, that you are actually choosing the gift "Registration" you set up for your fiancé & that you are not buying more I-Bonds for yourself.
3. Once you have purchased the gift & it shows up in your Giftbox, ready for delivery (usually 5 business days after purchase date) do not deliver it right away. Deliver it to your fiancé only in a year when she has not purchased their annual limit - otherwise, you will put her over her limit.
Hope this helps.
She did not have additional $7000 to purchase her limit of $10,000 that is why I gifted the additional to her. I guess despite our double checking. The GIFT BOX didn’t get checked. I was going to deliver the gift as soon as I was able. I tried calling but as you always say. I was on hold 2 hrs. and had to finally hang up. Was hoping if I spoke with someone that they could fix it on their end instead of waiting for the refund. Ughhhh
Just following up on my gift purchase Mix up. Finally got through on phone. Was told instead of waiting for them to refund my purchase that mistakenly was bought under my account and took me over the $10K limit., that I can go into Manage Direct. Edit Registration. Click on Bonds purchase to be changed. Hit Submit. Answer Security question. Then add new registration if not already in drop down. Check off Gift box to reassign it to my Fiancé. I have not tried it yet. But not optimistic since despite adding her as a registration. Her name never shows up on my drop down. I’ve done it all step by step correctly. But I’m going to try. The rep on phone seemed confident I can reassign the bond without waiting for refund
@@spam9419 Let me know how it goes for you - I actually just tried this & it doesn't seem to work. The gift registration is not showing up.
@@DiamondNestEgg update: Got the $7000 Transferred as GIFT to my Fiancé Account using the Manage Direct Edit Registration Bonds. Security Question check. and assigned to her. Originally she was not showing up on my added registration list. But clearly she was in my list. I could go to update registration list and see her there. Treasury Direct Rep agreed that she was indeed listed and as Gift registration. A good old fashioned glitch we have to assume. But I got it transferred to her as Gift with rep on the phone. But in future if a mistake happens like forgetting to check off gift box. It can be fixed without staying on hold 2 hrs. Thank you for your videos
Mike
They should just gift each other 50k vs one person receiving 100k, that way 20k a year becomes liquid. The entire 100k becomes liquid in 5 years.
I asked her beforehand if I could use her email as an example - I’m pretty sure she’s already seen/ is taking your comment into consideration
@@DiamondNestEgg I bought I bonds in Jan 2022, when will I see interest payments displayed on my account? Where can you see the interest payment? Thanks for the help Bond Queen.
@@danwesson1934 Bond Queen - I like that! So the answer is Month 4 - any day now basically. Three months’ interest always deducted in first five years so that the redemption value reflects the early withdrawal penalty.
@@DiamondNestEgg I read they hold 3 months of interest to cover the early termination penalty of three months interest payments. Does that mean during the first 6 month cycle, only three months of interest are added to the principal for the 2nd term of 6 months? Sorry to nail you with questions. Your the only one I communicate with that dorks out on savings bonds as much as I do. I found the I bonds weren’t a great conversation piece at dinner with friends lol. My wife wants to puke at this point because I’ve been obsessing over ibonds for a while. She says “your watching her again” lol. Thanks BQ
@@danwesson1934 So, keep in mind, my answer is is based what the TD reps have told me, given that we've also only held our I-Bonds for a few months only - but I do call 2 - 3 times to make sure I always get the same answer.
So, according to them, you're still getting your interest every month compounded, but what you will "SEE" online on your dashboard is everything minus the three months' interest. And when the five year hits, voilà - what you see is what you get - everything is there. My hypothesis is that they didn't want folks to see one number on their dashboard before year 5 and when they redeem, they get less than that (but that's only my personal hypothesis)
And that's funny about your wife - you can tell her I'll be back to one video a week soon so you'll be spending less time watching me :-)
I wish the government would raise the yearly purchase limit on I-bonds and I wish they would use the "True" rate of inflation instead of the manipulated CPI-U numbers they currently use. I have a bad feeling the stock market is going to go wayyyyy down (currency debasement/stagflation/depression). I don't even want to think about nuclear war!
I think a lot of folks in this community (us included) would love to see the annual I-Bond purchase limit go up.
Thanks for such a great video.
Question - I learned that gifting between spouse has no tax implication and a husband and wife can gift any amount to each other, without worrying about paying tax.
Can you please confirm if it is true?
The gift tax typically does not apply between spouses, but there are exceptions from what I understand, so I'd suggest consulting with your tax advisor.
Fantastic advice.. thank you!!! My strategy: I bought a total of 50K of I Bonds this week (20K for spouse and I, and 30K for gifting). What I understand is that my I Bonds are giving me interest STARTING from April 1, and not my April 26 purchase date. This is unreal.. wow! Next year, on April 27 2023, my I Bonds will mature, and also the I Bonds held in the Gift Box. So, possibly I can not only withdraw my 10K, but also the 10K that has been gifted me in 2023 (assuming no other I Bond purchases that year). So my spouse and I can each withdraw 20K next April 2023. Since CD rates are slowly going up, I believe that CD rates will start to exceed I Bond interest rates next year, and at that time I plan to move my savings into CDs which will give me more flexibility and liquidity. A good idea for me? (Your video is one of the very few that talks about the Gifting Loophole, and you opened my eyes! Thank you again)
You’re welcome - let’s see where CD rates are in 2023! I hope you’re right! And yes, they start earning interest from April 1st, but you won’t see anything on your account until the 5th month. Last three months‘ interest always deducted in the first five years of purchase (the early withdrawal penalty).
@@DiamondNestEgg I see the penalty as most recent 3 months of interest, rather than first 3 months which can make a big difference.
@@maryl.1382 Thanks for the catch - just updated it!
Another good video. It is IMPERATIVE to register your recipient with yourself as a beneficiary POD (payable on death) first, prior to gifting. I wish this step had been more clear & was easier to follow/execute. We created a first portion of gifted bonds without beneficiary and can't fix this until 2023. First world problems, lol
Don‘t worry - you can change this. I have a vid coming out in the next week or two on how to do it.
Can I gift my LLC 10k and my LLC gift me 10k?
No unfortunately
Hi Jennifer, Thank you for helpful information. Like you mentioned I purchased I Bonds instead of purchasing CD's. I would also like to open an additional account that would invest in SP 500 stocks. I guess its better than keeping the cash under the mattress :) Thanks again for sharing your financial information.
You’re welcome as always!
Is there anyway adding the beneficiary after I have bought the I Bond ? thanks for helping.
I have a video coming out on this very soon!
Hey Jennifer, thanks again for the detailed video. Another follow up question, not sure if you have already explained this, just wanted to confirm if buying I bond as a gift (say buying 50k and delivering 10k each in the next 5 years) will impact the annual gift declaration limit of $16k. Appreciate your advice.
My assumption is that it would since you’re buying everything in one year, but we‘re not tax advisors so I‘d suggest checking with your accountant
@@DiamondNestEgg I am a bit confused. If I buy $10k bond for myself this year, can I buy $10k bond for brother and $10k bond for sister in the same year? Which I plan to deliver bonds to brother in year 2023 and sister 2024 respectively (assume siblings not buying any for themselves). As I understand, gift limit $16k per donor per recipient , but I give $10k to each.
Yes - that is fine. If your sister and brother don’t buy anything this year, you can also deliver it to them this year - you need to wait five days after the purchase date to do this. Or you can deliver to both of them in 2023 if they don’t buy anything. You don’t have to wait until 2024 for delivery to your sister - is my point.
@@DiamondNestEgg It's very clear to me, thank you.
Hi Diamond - great video, I have a tough one for you. My wife and I each currently have $20,000 in our separate accounts listing each other as secondary owners. We also have $30,000 gifted to each other in our separate gift accounts listing ourselves as POD beneficiaries in our gift accounts. We also have each others login credentials so as long as each of us are living we are very flexible in account management should one of us become disabled.
What happens to our gift accounts should one of us die? Do all the bonds in the gift account transfer to the beneficiary account immune from the annual purchase limitation? I.e. if I were to die tomorrow would the 3 x $10,000 in my gift account transfer to my wife's account as the gift recipient? What would happen to her gift account listing herself as a POD beneficiary on her gifts to me? Would all 3 x $10,000 also transfer to her account (3 x $10,000) leaving her with ownership of all bonds ($100,000)
:-) Please check out the pinned comment at the very top of this gifting video, point #3: ruclips.net/video/bSoZJJypSAQ/видео.html
This is the best video on I Bonds I have ever seen, period. I have a question and a couple of suggestions. In the video, you mentioned gifting your spouse $30,000 this year in I bonds. Was that in a single purchase or 3 separate purchase of $10,000 each? In another video, you indicated that spouses are exempt (subject to verification by the I bond purchaser's accountant) from the annual gift limit of $16,000 but gifting to anyone other than the spouse in an amount exceeding $16,000 would trigger the requirement to file IRS Form 709. Are children also exempt from this annual gift limit as long as the gift is initiated by either parent?
In terms of suggestions, please do a video on how to create a living revocable trust using one's own SSN and buy I bonds through that vehicle. To me, this is akin to increasing the FDIC coverage limit by opening multiple accounts in different capacity with one's favorite financial institution.
The second suggestion is concerning buying paper bonds via IT Refund. Here's the process I used which worked very well when I filed my 2021 return.
1) Estimated my total tax liability for 2021 during the middle of the year and adjusted my federal withholding so that the total withholding by the year-end would be as close to the total liability as possible.
2) Downloaded "IRS2GO" app on my smart phone
3) In the last week of December 2021, using the above App, I made an estimated payment of $5000 (I could have also made it by Jan. 15, 2022). One does not have to front-load the excess payment in the earlier months and give uncle Sam an interest free loan.
4) When I filed my return electronically, I filled out Federal form 8888 and requested $5000 refund in paper I Bonds and the remaining as a direct credit to my account.
5) Received my paper I bond in less than three weeks.
1) It was 3 separate purchases
2) Children are not exempt from this annual gift tax exclusion amount
3) The trust videos are already in the works
4) Thanks for the sharing the info about how you bought your paper bonds with your tax refund