Subscribe
Notify of
guest

206 Comments
newest
oldest most voted

MC
MC (@guest_1524369)
January 2, 2023 16:23

Delivered first tranche of gifts yesterday, quick and easy process, bonds showed up immediately in the receiver’s account. I delivered the full amount and the transaction details broke down the principal/interest amounts, so a partial delivery would probably get prorated principal as far as counting against the 10k limit. The original bond is gone from my gift box but I can still see all the details in History.

Date: 01-01-2023
Description: Full Gift Delivered
Amount: $5,000.00
—-
Delivery Amount: $5,178.00
Principal: $5,000.00
Interest: $178.00

Note, for anyone who has gifts to deliver/receive and is considering purchasing more bonds this year, it works out better to deliver the existing gifts and purchase new gifts rather than holding on to them and the receiver directly purchasing their own bonds. The delivered gifts would be redeemable this year, whereas in the second case nothing could be redeemed until 2024.

numberator
numberator (@guest_1527339)
January 5, 2023 23:50
  MC

very useful. One question: I bought bonds in late December and since I had to hold onto them for 5 business days before they can be delivered, I was not able to send them by December 31. Now, when I they are delivered in January 2023, will this count toward my 2023 limit? or the limit has to do with WHEN you bought them rather than when you have them delivered.

Terry
Terry (@guest_1527357)
January 6, 2023 00:33

Since they were delivered in 2023, it will count toward your 2023 limit.

jcp
jcp (@guest_1527364)
January 6, 2023 00:57

maybe they are based on the issue date…

MC
MC (@guest_1527395)
January 6, 2023 01:53

2023 like Terry said, but if you bought them, who are you delivering them to? they will count against the receivers limit…

jcp
jcp (@guest_1527404)
January 6, 2023 02:09
  MC

is treasydirect website is smart enough to enforce limits for sending gifts, buying for kids, etc.? if so, then I don’t have to worry about buying over limits and worry about penalties.

MC
MC (@guest_1528400)
January 7, 2023 13:09

Possibly…a buggy update last fall was blocking all purchases for being over the limit until they fixed it. Even if you do go over, there’s no penalty other than having the transaction reversed and maybe having to wait to get your money back.

Luke
Luke (@guest_1474039)
October 27, 2022 13:04

One question: If I buy 10k gift for my wife on Jun 2022, and I am planning to send the gift on Jan 2023. When Jan 2023 comes, the 10k in the gift box has already gained some interest. Let’s say 10.1K.

Will I be able to send the 10.1K to my wife on Jan2023, which seems to be over the annual limit?

Or I can only gift her 10k on Jan 2023, the 0.1k has to be delivered on Jan 2024?

Or although the 10k will earn interest in the gift box for Jun 2022-Jan 2023, it will not shown the interest in the gift box, still shows 10k, only when I deliver it to my wife, her account will automatically shown the 10.1k on Jan 2023?

Luke
Luke (@guest_1474052)
October 27, 2022 13:33

In other words, is the gift option annual limit is based on the purchase value or current value?

MC
MC (@guest_1474053)
October 27, 2022 13:33

It doesn’t matter how much interest a gift bond has earned, delivering it will only count as 10k against her limit

Luke
Luke (@guest_1474750)
October 28, 2022 13:30
  MC

Thanks for the answer!

Eric
Eric (@guest_1491381)
November 18, 2022 18:50

I would expect that the $10K bond with the associated interest would transfer along with it. Remember that you are transferring the face value of the bond which is what counts and not the total amount.

Frey
Frey (@guest_1524473)
January 2, 2023 20:13

Luke Late comment to this but there isn’t an annual limit between spouses unless one isn’t a US citizen. And even then, it’s high limit,

MC
MC (@guest_1524517)
January 2, 2023 21:48

He’s asking about the I-bond 10k annual limit, not the IRS gift tax exclusions

Vanilla Bean
Vanilla Bean (@guest_1473847)
October 27, 2022 08:10

Can you make gifts to minors? I just made the purchase and checked the Gift Box for custodial account. It says it is not available for this type of account. I hope I am able to access this money in 2023…Anyone experience this?

MC
MC (@guest_1474026)
October 27, 2022 12:54

Yeah, you should be able to…make sure you are in your main account and not in the minor’s MLA…

Amy C
Amy C (@guest_1473667)
October 26, 2022 22:53

If you are gifting, who pays taxes on the interest? Who gets the 1099?

Amy C
Amy C (@guest_1473845)
October 27, 2022 08:04

that makes sense! thanks.

Vanilla Bean
Vanilla Bean (@guest_1473023)
October 26, 2022 08:35

Does the 12-month holding period start from when you buy it or when the gift is received?

Penny
Penny (@guest_1471503)
October 24, 2022 08:35

I am trying to make sure I do this right to bypass the $10k limit and gifting. So on the purchase page, under “Purchase frequency”/”Schedule single purchase for”, do I put today’s date or Jan 1, 2023?

MC
MC (@guest_1471511)
October 24, 2022 09:00

Today’s, and make sure the registration you’re using has the gift box checked. If you haven’t purchased gifts before, I found it easier to create the registrations beforehand so you could just use the dropdown box to select one, rather than creating it on the fly during the purchase.

Tony
Tony (@guest_1473828)
October 27, 2022 07:13
  MC

When should I deliver the gift purchase to the recipent (gift is for 2023, and she already purchased it this year)? Does the system automatically know this gift is for 2023?

MC
MC (@guest_1474021)
October 27, 2022 12:38

No, the gift will sit in your gift box until whenever you decide to deliver it…could be as early as Jan 1.

B
B (@guest_1468413)
October 18, 2022 18:40

Hi. Would you please update the link for: Here’s a how-to from Treasury Direct (pdf) on how to go about gifting I Bonds?

B
B (@guest_1468714)
October 19, 2022 09:09

Thanks for quickly updating the link!

nightfir
nightfir (@guest_1461629)
October 9, 2022 22:29

Gifting US Treasury Bonds seem to counted as the recipient’s annual limit now. I got an error message, “Annual limit exceeded. Please edit the purchase amount or edit your pending purchases under ManageDirect, if applicable, and try again.”

ariv
ariv (@guest_1461689)
October 10, 2022 02:27

I am having the same issue.

lonely
lonely (@guest_1461859)
October 10, 2022 11:32

same issue. Looks like they screwed up something when revamping the site.

MC
MC (@guest_1461948)
October 10, 2022 14:02

Were you trying to deliver a gift to someone who already purchased $10k for this year, or the other way around? There was speculation that the surge in popularity of these made TD tighten up enforcement of the limits.

TWoK
TWoK (@guest_1462087)
October 10, 2022 17:59
  MC

Trying to purchase for someone who has no bonds at all. Continuously hitting the limit.

JD
JD (@guest_1468742)
October 19, 2022 10:05

yeah its fixed

AJ
AJ (@guest_1471237)
October 23, 2022 16:37

Can someone update if gifting option is working now?

Sunnyboy1234
Sunnyboy1234 (@guest_1471691)
October 24, 2022 14:11
  AJ

I can confirm. Just did it. It is working again.

gli
gli (@guest_1408303)
July 13, 2022 10:24

Already at 6.12% for the next I Bond Rate come Nov. 1st. Might want to start stocking up for 2024 gift purchases…

The June inflation report is the third in a six-month string — March to September — that will determine the I Bond’s new variable rate, which will be reset November 1.

After three months, inflation has increased 3.06%, which would translate to a variable rate of 6.12%.

But three months remain, and a lot can happen in three months, especially summer months when inflation is very hard to predict. The I Bond’s current variable rate is 9.62%.

HarryTheFirstHarry
HarryTheFirstHarry (@guest_1399157)
June 23, 2022 11:53

Its almost the end of June, half way point for the year and inflation does not look like going down anytime soon. So it is possible that 2023 interest rates could be higher for i-bonds (say for example 12%). In which case would buying now to gift to P2 be a good strategy? Just thinking aloud….i-bond rate minus 3 months penalty is still better than any 1 year CD. So if you have 10K to put in a CD or savings might instead buy the i-bond gift now so it starts earning the interest which would be better than stashing it in a high yield account earning say 4% and then buying the 2023 ibond quota at a potentially 12% rate….Also buying now has the advantage of being able to cash out July 2023 versus Jan 2024 cashout for Jan 2023 purchases.

Celia
Celia (@guest_1399162)
June 23, 2022 12:04

It doesn’t go by calendar year (May/November resets). We’re at 2 months of dates so far for the next rate reset.

But I agree, the current rate plus a decent rate, if the inflation rate stays high, in November will be better than any CD.

Ben
Ben (@guest_1399163)
June 23, 2022 12:05

I think the rate could stay close to 7-9% but don’t think the renewal will be higher with the Fed tightening. Might as well wait to buy more until end of October at this point imo.

HarryTheFirstHarry
HarryTheFirstHarry (@guest_1399608)
June 24, 2022 08:25

Celia Ben Thanks for the responses. I think I overlooked one fact which is that we are not “locking” the rate in now – unlike a CD. If the rate goes up the bond I purchase today will get the higher rate in November and beyond in addition to the current interest starting from today. So its probably good to buy now if I have the money now than to wait for a potentially better rate in Nov or in 2023. Basically nothing really lost by buying now versus waiting. In fact better to buy now so that is starts earning interest immediately even if that means I wont be able to buy any in 2023 at all.