https://www.treasurydirect.gov/indiv/he ... rnmore.htm
Instructions for LLC and Sole Proprietor accounts (among others) are here.
https://www.treasurydirect.gov/indiv/he ... rnmore.htm
So this is something the Treasury allow businesses to do with their cash balances? Buy bonds and then report the interest earned as income?BrokerageZelda wrote: ↑Sun May 23, 2021 10:21 pmhttps://www.treasurydirect.gov/indiv/he ... rnmore.htm
Instructions for LLC and Sole Proprietor accounts (among others) are here.
Ugh. Such a pain.Treasury Direct wrote:We are having difficulty verifying the information you provided when opening your account. For your protection...
On the application, you enter both your EIN (for your business, not for the solo 401k) and your SSN. I assume that the 1099 posts on the EIN when you cash out, but the EIN points to your SSN when you created it. If you were conservative, you should only use the I Bonds purchased under your SSN, as supposedly the I Bonds are purchased on behalf of the sole proprietorship, but I see no guidance either way.LTCM wrote: ↑Sun May 23, 2021 11:56 pm So this is something the Treasury allow businesses to do with their cash balances? Buy bonds and then report the interest earned as income?
Anything else I should know? I assume I can't avoid tax by using them to buy qualified education with the proceeds like with a personal purchase?
Is your credit frozen?Phantom0606 wrote: ↑Tue May 25, 2021 8:38 am Team - i tried creating a account but its saying i need additional verification through snail mail which may take a couple of weeks.
Am i able to buy these in June if thats when my account gets approved or would it not be worth it?
It sounds like you're worried that you'll have fewer months at 3.54% if you buy in June or later. That's not actually true.Phantom0606 wrote: ↑Tue May 25, 2021 8:38 am Team - i tried creating a account but its saying i need additional verification through snail mail which may take a couple of weeks.
Am i able to buy these in June if thats when my account gets approved or would it not be worth it?
Maybe that is the trick, me spouse and I both unfrooze all our credit when we created out TD accounts. We were able to create them without having to mail any form with MSG. Our accounts were later locked (shortly after opening them), but we were both able to unlock them via phone. No issues since unlocking them that first time. We completed I Bond purchases last year and this year without issues.Phantom0606 wrote: ↑Tue May 25, 2021 8:44 am Yea i believe i froze it temporarily from a cyber security perspective.
Is the flip side......redeem at the beginning of the month rather than at the end also true?neurosphere wrote: ↑Tue Dec 22, 2020 10:49 am
A purchase on Jan 28th is the same as a purchase on Jan 4 (for example). That is, come February 1, both purchase dates will have counted as a one-month holding period and earn the same interest.
Yes. Treasury back-dates all purchases to the first of the current month. That means that interest is always credited at the beginning of the month. So if you redeem during the final week of the month, you get the same redemption value as you would by redeeming during the first week of the month.Arby wrote: ↑Tue May 25, 2021 11:16 amIs the flip side......redeem at the beginning of the month rather than at the end also true?neurosphere wrote: ↑Tue Dec 22, 2020 10:49 am
A purchase on Jan 28th is the same as a purchase on Jan 4 (for example). That is, come February 1, both purchase dates will have counted as a one-month holding period and earn the same interest.
I'm considering buying but anticipate problems since I live overseas but don't have an "official" US address. Anyone know how they verify info?
If I were in your situation, I would probably give TD customer service a call (without volunteering your identity) to ask if they have any rules or processes for US persons living abroad.
If you purchase near the end of the month and sell near the start of the month you can effectively reduce the 3 month interest penalty (if redeemed before 5 years) to something closer to 2 months.BrokerageZelda wrote: ↑Tue May 25, 2021 11:29 amYes. Treasury back-dates all purchases to the first of the current month. That means that interest is always credited at the beginning of the month. So if you redeem during the final week of the month, you get the same redemption value as you would by redeeming during the first week of the month.Arby wrote: ↑Tue May 25, 2021 11:16 amIs the flip side......redeem at the beginning of the month rather than at the end also true?neurosphere wrote: ↑Tue Dec 22, 2020 10:49 am
A purchase on Jan 28th is the same as a purchase on Jan 4 (for example). That is, come February 1, both purchase dates will have counted as a one-month holding period and earn the same interest.
This is new information for me, that an LLC counts as a separate entity. I knew trusts were an example of a "non-human" entity. But calwatch implies that somehow a solo401 is needed? I can't find information on that. I don't think the 401k need exist or otherwise plays a role? It seems merely the existence of the LLC (or other similar entity) is sufficient. Do I have that correct?LTCM wrote: ↑Sun May 23, 2021 11:56 pmSo this is something the Treasury allow businesses to do with their cash balances? Buy bonds and then report the interest earned as income?BrokerageZelda wrote: ↑Sun May 23, 2021 10:21 pmhttps://www.treasurydirect.gov/indiv/he ... rnmore.htm
Instructions for LLC and Sole Proprietor accounts (among others) are here.
Anything else I should know? I assume I can't avoid tax by using them to buy qualified education with the proceeds like with a personal purchase?
That page is for creating a Treasury Direct account for various entities, not buying Series I Bonds. The Series I Bond detail page explicitly excludes "Corporations, partnerships, other entities" in its eligibility table.BrokerageZelda wrote: ↑Sun May 23, 2021 10:21 pm https://www.treasurydirect.gov/indiv/he ... rnmore.htm
Instructions for LLC and Sole Proprietor accounts (among others) are here.
The table where certain entities are not allowed to own savings bonds are for “paper” bonds only.drk wrote: ↑Tue May 25, 2021 2:24 pmThat page is for creating a Treasury Direct account for various entities, not buying Series I Bonds. The Series I Bond detail page explicitly excludes "Corporations, partnerships, other entities" in its eligibility table.BrokerageZelda wrote: ↑Sun May 23, 2021 10:21 pm https://www.treasurydirect.gov/indiv/he ... rnmore.htm
Instructions for LLC and Sole Proprietor accounts (among others) are here.
yes, I see it specifically says "yes" with regards to owning online bonds as a "corporation".
Thanks for noting that. Treasury Direct's horrible design strikes again.
Got it. But if any org has it's own EIN, that's almost by definition an independent entity, right?calwatch wrote: ↑Tue May 25, 2021 6:42 pm Solo 401k was just used as an example of a person with an entity EIN. There is no requirement to have an EIN to open an account as a sole proprietor. The "sole proprietor" definition is very fuzzy and there are no guidelines for determining who is or isn't a sole proprietor. If you have a solo 401k, you obviously earned enough self employment income to definitely qualify. Someone whose income consists solely of W-2 wages and regular interest and dividends, not so much. Sorry for the confusion.
But, I would love another $10,000 in I-bonds!
Not me.
Me too! I wish they would increase the annual purchase limit.
Me and my wife both created TD accounts last November without unfreezing our credit, and had no issues. It seems like a lottery if people have issues or not.anon_investor wrote: ↑Tue May 25, 2021 9:08 amMaybe that is the trick, me spouse and I both unfrooze all our credit when we created out TD accounts. We were able to create them without having to mail any form with MSG. Our accounts were later locked (shortly after opening them), but we were both able to unlock them via phone. No issues since unlocking them that first time. We completed I Bond purchases last year and this year without issues.Phantom0606 wrote: ↑Tue May 25, 2021 8:44 am Yea i believe i froze it temporarily from a cyber security perspective.
Did TD lock your account shortly after you opened it? I am pretty sure they locked my and my spouse's accounts shortly after opening them because when you create the account you can only add 1 bank account, and after we created our accounts we proceeded to add our other bank accounts, and the accounts were pretty much locked shortly thereafter. Fortunately a phone call for each of us was all it took to unlock and no issues since. My spouse has not made any account changes since then, the only change I did was to add a second phone number.ImUrHuckleberry wrote: ↑Thu May 27, 2021 7:04 amMe and my wife both created TD accounts last November without unfreezing our credit, and had no issues. It seems like a lottery if people have issues or not.anon_investor wrote: ↑Tue May 25, 2021 9:08 amMaybe that is the trick, me spouse and I both unfrooze all our credit when we created out TD accounts. We were able to create them without having to mail any form with MSG. Our accounts were later locked (shortly after opening them), but we were both able to unlock them via phone. No issues since unlocking them that first time. We completed I Bond purchases last year and this year without issues.Phantom0606 wrote: ↑Tue May 25, 2021 8:44 am Yea i believe i froze it temporarily from a cyber security perspective.
Nope, they have never locked our accounts. Though we've only ever added once bank account to each TD account. Not because we knew that might cause an issue, but only because we only use one bank account for linking to other stuff.anon_investor wrote: ↑Thu May 27, 2021 9:22 amDid TD lock your account shortly after you opened it? I am pretty sure they locked my and my spouse's accounts shortly after opening them because when you create the account you can only add 1 bank account, and after we created our accounts we proceeded to add our other bank accounts, and the accounts were pretty much locked shortly thereafter. Fortunately a phone call for each of us was all it took to unlock and no issues since. My spouse has not made any account changes since then, the only change I did was to add a second phone number.ImUrHuckleberry wrote: ↑Thu May 27, 2021 7:04 amMe and my wife both created TD accounts last November without unfreezing our credit, and had no issues. It seems like a lottery if people have issues or not.anon_investor wrote: ↑Tue May 25, 2021 9:08 amMaybe that is the trick, me spouse and I both unfrooze all our credit when we created out TD accounts. We were able to create them without having to mail any form with MSG. Our accounts were later locked (shortly after opening them), but we were both able to unlock them via phone. No issues since unlocking them that first time. We completed I Bond purchases last year and this year without issues.Phantom0606 wrote: ↑Tue May 25, 2021 8:44 am Yea i believe i froze it temporarily from a cyber security perspective.
Interesting. I wonder if most people never have issues and we only hear about the people on BH complaining they have an issue...ImUrHuckleberry wrote: ↑Thu May 27, 2021 4:16 pmNope, they have never locked our accounts. Though we've only ever added once bank account to each TD account. Not because we knew that might cause an issue, but only because we only use one bank account for linking to other stuff.anon_investor wrote: ↑Thu May 27, 2021 9:22 amDid TD lock your account shortly after you opened it? I am pretty sure they locked my and my spouse's accounts shortly after opening them because when you create the account you can only add 1 bank account, and after we created our accounts we proceeded to add our other bank accounts, and the accounts were pretty much locked shortly thereafter. Fortunately a phone call for each of us was all it took to unlock and no issues since. My spouse has not made any account changes since then, the only change I did was to add a second phone number.ImUrHuckleberry wrote: ↑Thu May 27, 2021 7:04 amMe and my wife both created TD accounts last November without unfreezing our credit, and had no issues. It seems like a lottery if people have issues or not.anon_investor wrote: ↑Tue May 25, 2021 9:08 amMaybe that is the trick, me spouse and I both unfrooze all our credit when we created out TD accounts. We were able to create them without having to mail any form with MSG. Our accounts were later locked (shortly after opening them), but we were both able to unlock them via phone. No issues since unlocking them that first time. We completed I Bond purchases last year and this year without issues.Phantom0606 wrote: ↑Tue May 25, 2021 8:44 am Yea i believe i froze it temporarily from a cyber security perspective.
Thank you. This was helpful. If you purchase "out of phase" like this, you still get the current attractive interest rate for 6 months. What happens after new rates kick in November? Say I purchase the bond in June, do the announced November rates kick in for MY bond in December instead and last an additional month as well? I admittedly haven't phrased this question very well, but hopefully you understand what I'm asking.BrokerageZelda wrote: ↑Tue May 25, 2021 9:06 amIt sounds like you're worried that you'll have fewer months at 3.54% if you buy in June or later. That's not actually true.Phantom0606 wrote: ↑Tue May 25, 2021 8:38 am Team - i tried creating a account but its saying i need additional verification through snail mail which may take a couple of weeks.
Am i able to buy these in June if thats when my account gets approved or would it not be worth it?
You won't lose any time with the big interest rate as long as you purchase by the end of October, because the initial rate is always locked for six months after purchase.
If you buy in June, you get 3.54% for six months through the end of November.
If you buy in July, you get 3.54% for six months through the end of December.
If you buy in August, you get 3.54% for six months through the end of January.
etc. No rush.
Yes, you will ge the new variable rate after 6 months. So in your example if you bought in June 2021 (you get 3.54% for 6 months), then in December 2021 you would start getting the new variable rate announced in November 2021 for the next 6 months, and it will then reset again, etc.Cheez-It Guy wrote: ↑Thu May 27, 2021 8:40 pmThank you. This was helpful. If you purchase "out of phase" like this, you still get the current attractive interest rate for 6 months. What happens after new rates kick in November? Say I purchase the bond in June, do the announced November rates kick in for MY bond in December instead and last an additional month as well? I admittedly haven't phrased this question very well, but hopefully you understand what I'm asking.BrokerageZelda wrote: ↑Tue May 25, 2021 9:06 amIt sounds like you're worried that you'll have fewer months at 3.54% if you buy in June or later. That's not actually true.Phantom0606 wrote: ↑Tue May 25, 2021 8:38 am Team - i tried creating a account but its saying i need additional verification through snail mail which may take a couple of weeks.
Am i able to buy these in June if thats when my account gets approved or would it not be worth it?
You won't lose any time with the big interest rate as long as you purchase by the end of October, because the initial rate is always locked for six months after purchase.
If you buy in June, you get 3.54% for six months through the end of November.
If you buy in July, you get 3.54% for six months through the end of December.
If you buy in August, you get 3.54% for six months through the end of January.
etc. No rush.
I saw that ! Interesting.Freefun wrote: ↑Fri May 28, 2021 10:29 am Article in the WSJ on I bonds. This forum is referenced as well.
https://www.wsj.com/articles/i-bonds-th ... yURL_share
You could say the same about many things and many forums, but add me to the "haven't had an issue yet (knock on wood)" column for Bogleheads using TreasuryDirect. I've kept my account very simple though. It is just linked to my secondary bank account (which has no money in it unless I'm conducting a specific transaction, like a previous poster) and it just holds my personal I Bonds.anon_investor wrote: ↑Thu May 27, 2021 5:28 pm Interesting. I wonder if most people never have issues and we only hear about the people on BH complaining they have an issue...
imho, buying I-bonds is always worth it.Phantom0606 wrote: ↑Tue May 25, 2021 8:38 am Team - i tried creating a account but its saying i need additional verification through snail mail which may take a couple of weeks.
Am i able to buy these in June if thats when my account gets approved or would it not be worth it?
This is an easy call. My remaining $5k purchase for 2021 was completed earlier this week with the 3.54% rate for the next 6 months. Then I checked out my previous purchases going back to 2017. There are a couple of 3.54%s in there, a 3.64%, several 1.68%, and a 4.05%!protagonist wrote: ↑Fri May 28, 2021 3:47 pmimho, buying I-bonds is always worth it.Phantom0606 wrote: ↑Tue May 25, 2021 8:38 am Team - i tried creating a account but its saying i need additional verification through snail mail which may take a couple of weeks.
Am i able to buy these in June if thats when my account gets approved or would it not be worth it?
Nice! A week ago, this was my plan as well. But then circumstances changed and dictated maximum liquidity, so I will defer my decision until October.
I've never paid much attention to TD's numbers, at least in the short run d/t the 3-month interest penalty that goes away after 5 years, so I'll just make a guess: You're locked out of selling your I Bond for 1 year, so perhaps you won't see any accrual until Feb 1st, 2022? Even then, note that it will still omit the 3 most recent months' interest as an early withdrawal penalty until Feb 2026.
You would not see the last 3 months of interest, so until you have accrued 4 motnhs of interest will it show you as having any interest. So you will not see any interest until July 1, and it would only be 1 months worth.
I think they are actually past 4 months already...anon_investor wrote: ↑Tue Jun 29, 2021 2:49 pmYou would not see the last 3 months of interest, so until you have accrued 4 motnhs of interest will it show you as having any interest. So you will not see any interest until July 1, and it would only be 1 months worth.
You're right 4 months have past, unless they were really purchased in March instead of Feb.SnowBog wrote: ↑Tue Jun 29, 2021 5:28 pmI think they are actually past 4 months already...anon_investor wrote: ↑Tue Jun 29, 2021 2:49 pmYou would not see the last 3 months of interest, so until you have accrued 4 motnhs of interest will it show you as having any interest. So you will not see any interest until July 1, and it would only be 1 months worth.
I've got TD synced to Fidelity's "full view" (aka eMoney), and it shows me updates monthly.
But if I recall, when you go to the TD site, the default view only shows what's redeemable (or what was purchased)... At least I'm pretty sure the last time I looked, it showed all my bonds < 1 year as $10k without accrued interest. Seems like I had to click on my bond to get to the details to see how much interest had accrued...
But I might be wrong, as I only login to TD to buy (and eventually sell) bonds...
Wouldn't that still be 4+ months? March (purchased anytime in the month counts), April, May, June... 1, 2, 3, 4... ETA: Would have to been purchased in February to have 4 months passed... Purchases in March will hit 4 months in July...anon_investor wrote: ↑Tue Jun 29, 2021 5:30 pmYou're right 4 months have past, unless they were really purchased in March instead of Feb.SnowBog wrote: ↑Tue Jun 29, 2021 5:28 pmI think they are actually past 4 months already...anon_investor wrote: ↑Tue Jun 29, 2021 2:49 pmYou would not see the last 3 months of interest, so until you have accrued 4 motnhs of interest will it show you as having any interest. So you will not see any interest until July 1, and it would only be 1 months worth.
I've got TD synced to Fidelity's "full view" (aka eMoney), and it shows me updates monthly.
But if I recall, when you go to the TD site, the default view only shows what's redeemable (or what was purchased)... At least I'm pretty sure the last time I looked, it showed all my bonds < 1 year as $10k without accrued interest. Seems like I had to click on my bond to get to the details to see how much interest had accrued...
But I might be wrong, as I only login to TD to buy (and eventually sell) bonds...