IBonds over the limit - Gifting

[ppnewbie]

https://youtu.be/bSoZJJypSAQ

[Maddy]

Some other possibilities:

If you have a trust, you’re allowed to buy another $10,000 each calendar year in a trust account. See Buy More I Bonds in a Revocable Living Trust.

If you have a business, the business can also buy $10,000 each calendar year. See Buy I Bonds for Your Business: Sole Proprietorship, LLC, S-Corp.

If you have kids under 18, you can also buy $10,000 each calendar year in each of your kids’ names. See Buy I Bonds in Your Kid’s Name.

If you’d like to buy I Bonds as gifts to others, see Buy I Bonds as a Gift.

A married couple each with a trust and a self-employment business can buy up to $65,000 each calendar year, and more if they file separate tax returns, buy in their kids’ names, or buy as gifts for family members.

$10,000 in Person A’s personal account with Person B as the second owner
$10,000 in Person B’s personal account with Person A as the second owner
$10,000 in an account for Person A’s trust
$10,000 in an account for Person B’s trust
$10,000 in an account for Person A’s business
$10,000 in an account for Person B’s business
$5,000 using money from their tax refund if they file jointly (or $5,000 each if they file separately after making sure they won’t lose other tax benefits)
$10,000 in the name of each of their kids under 18
$10,000 as a gift for each member of the extended family

https://thefinancebuff.com/how-to-buy-i-bonds.html

[ppnewbie]

Thanks! That might give me the motivation to start a trust. I need to do it anyway.

[yankees60]

Some other possibilities:


https://thefinancebuff.com/how-to-buy-i-bonds.html

MANY thanks for this. EXTREMELY useful!

[Cortopassi]

My wife and I just gifted ourselves 20k each. No brainer, since the money will at least make 9.62 for the next few months!

[barrett]

My wife and I just gifted ourselves 20k each. No brainer, since the money will at least make 9.62 for the next few months!

Technically that $40,000 doesn't make anything over the next few months because of the way the three-month "redeemed before five years" penalty comes off the beginning of the five-year period. So, on the Treasury Direct savings bond calculator, you won't see any interest showing up through 1/31/23. Then on 2/1/23 you will see $80 per $10,000 invested show up as your January interest. And by 7/1/23 you'll have gotten your 9.62% annualized yield paid out for six months before the new, lower 11/1/22 - 4/30/23 rate kicks in for six months. At least this is my understanding.

Still a better deal than you can get from any other safe, fixed-income investment for sure.

[Cortopassi]

My wife and I just gifted ourselves 20k each. No brainer, since the money will at least make 9.62 for the next few months!

Technically that $40,000 doesn't make anything over the next few months because of the way the three-month "redeemed before five years" penalty comes off the beginning of the five-year period. So, on the Treasury Direct savings bond calculator, you won't see any interest showing up through 1/31/23. Then on 2/1/23 you will see $80 per $10,000 invested show up as your January interest. And by 7/1/23 you'll have gotten your 9.62% annualized yield paid out for six months before the new, lower 11/1/22 - 4/30/23 rate kicks in for six months. At least this is my understanding.

Still a better deal than you can get from any other safe, fixed-income investment for sure.

Thanks. This is money that will be in there at least until UST Bonds are doing better, which may happen sooner rather than later.

[ppnewbie]

Just gifted but stuck to a 10k per person. I may just turn around and convert the gift in January.

[barrett]

Just gifted but stuck to a 10k per person. I may just turn around and convert the gift in January.

That's the way I am leaning as well. It's been great to get some more 9.62% I-Bonds but I don't like that it adds a level of complexity that my wife is likely to struggle with if I pass. Trying to keep everything as simple as possible.

[ppnewbie]

Just gifted but stuck to a 10k per person. I may just turn around and convert the gift in January.

That's the way I am leaning as well. It's been great to get some more 9.62% I-Bonds but I don't like that it adds a level of complexity that my wife is likely to struggle with if I pass. Trying to keep everything as simple as possible.

One thing to note in the original video I posted is the designation is beneficiary. I've been buying iBonds is specific names without the Beneficiary designation. I need to change that.

Also @barrett. I agree. I know a few people that thrive on constantly increasing complexity, in their investments. Not me or as you said the people that will eventually get handed a potential hairball of investments.