Learn more about the legal I Bond loophole I discovered a few weeks ago on how to buy more I bonds in 2022 | I BONDS FOR COUPLES (buy more than the annual I Bond limit) – not many people know about this I Bond loophole or if they do, they’re keeping it to themselves.
Well, I’M SHARING it with you because it’s simply too good to keep to myself, especially whilst we’re all battling this inflation crisis together and yes, buying more than the annual I Bond limit does have something to do with buying I bonds for a spouse – gifting I bonds for married couple – but you can do this with any other trusted family member or close friend if you have the right intentions & enough cash.
I bonds how to buy (for a partner or other loved one) – this how to buy an I bond step-by-step tutorial will walk you through in detail how to buy I bonds for a spouse – but you can do this with any other trusted family member or close friend if you have the right intentions & enough cash – and even more importantly, how gifting an I bond to a spouse & vice versa can help both of you buy I bonds in 2022 beyond the annual i bond limit!
👉 If you don’t have a Treasury Direct account yet – watch this video first “How to buy an i bond step by step tutorial | what to do during inflation” – – because you’ll need your own Treasury Direct account to buy your first I Bond as well as to buy more I Bonds via the legal I Bond loophole we discovered.
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FAQs – LAST UPDATED JUNE 3, 2022
1) WATCH BEFORE GIFTING (tips, limitations & restrictions): https://youtu.be/2UBXXQUxJ4M
2) Reference resources – here are the two we used before contacting TreasuryDirect to confirm in March
Electronic Code of Federal Regulations: https://www.ecfr.gov/current/title-31/subtitle-B/chapter-II/subchapter-A/part-363/subpart-C/subject-group-ECFR40621f7738442c1/section-363.52
Please refer to Section 363.52
TreasuryDirect: https://www.treasurydirect.gov/indiv/research/articles/res_invest_articles_purchaselimits_0406.htm
Please refer to the "Savings Bonds" section, "Exceptions" sub-section
3) Death of gifter and/or recipient before gifts are delivered
I'm going to turn this into a short video at some point, but for those of you wanting a quick answer, let's use this example. Assume that Husband Jack buys Wife Jill $20K of I-Bond gifts this year – $10K to be delivered in 2023 and $10K to be delivered in 2024, when Jill doesn't plan on buying anything for herself. And Jill dies this year due to some unforeseen accident.
Here's how it would work:
a) When Jack buys Jill her gift I-Bonds, he makes sure that he names himself as the beneficiary (POD) per the video tutorial.
b) When Jill passes away due to this unforeseen accident (in this hypothetical example), Jack still has $20K of gift bonds sitting in his gift box waiting for Jill, undelivered. Per the TreasuryDirect's website, what he would need to do then is to contact them (the Bureau of Fiscal Service) directly (844-284-2676.). They would then "put a hold on the account and give specific instructions for the situation".
Further conversations with TreasuryDirect indicated that the bonds would be reissued electronically in Jack's name once he submits the requisite form & a copy of Jill's death certificate to TreasuryDirect.
c) In addition, any I-Bonds that Jill purchased for herself – with her annual $10K limit via TreasuryDirect – where Jack is named as the beneficiary can also be transferred to him in the same manner.
And according to the friendly TreasuryDirect folks, this would have no impact on Jack's annual purchase limit of $10K because it's considered a transfer of assets (not a purchase).
The process would be similar if Jack (as the gifter) passed away. Jill would be the one calling TreasuryDirect to get the requisite documents completed & sent in, so that the I-Bonds (of which she is the gift recipient) can be transferred to her.
And if Jack & Jill both roll down the hill unexpectedly & pass away together – Jack & Jill's next of kin/ children would follow this process as well to transfer their parents' bonds to themselves (assuming the next of kin/ children were named as beneficiaries or joint-owners on the bonds).
If the next of kin/ children were not named as beneficiaries or joint owners OR if the bonds are worth more than $100,000, the process will differ, so do contact TreasuryDirect for more details if this applies to you.
4) Adding a beneficiary after purchase: I'm working on a how-to-video now – it will be out the week of May 9th
If a gift is in the Gift Box, and the eventual gift recipient dies, does the named beneficiary receive the iBond?
Thank you for your amazing videos. I would like to ask how to re-invest earnings on an IBond in Treasury Direct. Thanks.
❤❤ LOVE the video!! Can I gift it for my child (1 year old)?
Jennifer, this is the best video on gifting I-bonds. I followed your instructions back in May and bookmarked your video for future reference. I checked this morning and sure enough, the I-bonds sitting in the gift box have earned interest just like you said they would. Thank you for the super informative video!
How is annual limit counted ? It is Calendar year or Fiscal Year ?
Just stumbled onto your channel and started watching your videos. Very clear and easy to understand! Thanks and keep up the good work up1
Can you buy a I Bond in a joint account?
With the new rate of 6+ %, would you still buy IBond?
Thanks for your sharing. It is really helpful to watch your videos regarding fixed income investment. By the way, I have a question regarding the limit of I-Bond purchase. If a couple report tax jointly and get tax refund 0f $5000, could they only share the $5000 amount to buy more I-Bond ($2500 for each) or could they buy $5000 I-Bond each of them based on the $5000 tax refund jointly? Thanks.
Treasury Direct does not allow you to buy Treasuries through your IRA. Too bad since the rates now are pretty good. Any other options to get those rates 3-4% for an IRA with Treasuries or a AAA CD somewhere that you can but in your IRA? Thank you.
Jennifer, I have a silly question on buying Paper I Bonds with Tax Refund monies. If I owe taxes can I overpay that amount and still request to purchase I Bonds?
If you want to gift a same person, am I just click the same name from the drop down box? It seems like no options to check as gift. Does it same to the profile it as a gift? Thanks.
If a person has died before you gifted the contribution. what happens to the i bond gift that's in limbo
Dear Jennifer: awesome info as always. Q: I want to give my 2 yr old granddaughter $10k gift. Can a minor open a TD account? How long can she keep the money earning interest before casing it at 18? For education and not pay taxes?
Cheers
A
I like your video! I bought one last year and this year. Sadly the website is locked today and yesterday 9.12% and it’ll go lower to 6% is estimated next term. Luckily the stock market is going back to normal so wait a year and gains can be tax free or 12% depending on income.
Thank goodness for this video. Also, I forgot to have POD on my original I-bond. Now fixed.
Super clear tutorials on a complex subject. Really appreciate the clarity, detailed explanations and step-by-step tutorials. Thank you for helping people with this. It's really generous of you to share your knowledge and help those who don't have a head for this (but their wallet still needs it!)
I have already purchased an I Bond as a gift for a family member and would like to make another gift purchase for the same family member. Since their registration is already in my account, when I select that registration to buy the second gift for, the gift check box option is no longer present. Is that an issue or is the gift selection already a given since I already gifted an I bond to that registration?
Hi Jennifer, this has been some great information! I was a little unclear on how the calendar year works for something like this? Let's say you bought this in June 2021, and he bought 10k of I-bonds in March 2022. When would be the earliest you would be able to deliver it to him? March 2023? Or January 1st 2023? Thank you!
Can I follow the same gifting instructions in this video (for spouse) to gift I-bond to my minor kids? Reason for asking is that my minor kids' account is already linked to mine as a minor account in TD, as opposed to my spouse who has a separate TD account of her own.
I was just able to gift to my wife and she to me just now. Thank you so much Jennifer.
Has anyone found out if form 709 is required if spouse A buys 20k of I Bonds for Spouse B (assuming both are US citizens)?
While the gift is sitting in your TreasuryDirect account waiting to be delivered, it is in a special "gift box." So, even then, it is not yours and does not count in your limit.
Thank you for your video,me and my wife thought we had to wait until january to buy another 10000$ in ibonds,now we will buy as gifts to each other and get them at the 9.6% rate and in january we will gift them to each other!! Thanks Again
Can you please do a video on the “3 month interest penalty” for early redemption? Since TD posts interest monthly, how is a partial month handled? Or is it the most recent full 3 month period? With all the $$ going into I-bonds, when inflation does come down to a reasonable level a lot of folks will be looking for an exit strategy. Love to hear your thoughts as to when and how to get out? Keep up the good work?
So if I bought 10k as a gift, and hold it for a year and it earns $800 in interest, does that mean that I have to split the delivery of the initial 10k in one year and the remaining interest the following year?