Ibond Limits For A Personal Account And A Trust Account, Both With The Same Ssn

Ltssharon
  |     |   60 posts since 2020

I need to know if I can buy $20000 worth of ibonds in a calendar year if:

I have an individual account,

I also have just opened a trust account (I am the trustee as well as the manager)

and,

both accounts have the same social security number.

I have already purchased $10000 in the individual account rin 2021, and would like to purchase $10000 in the trust account before the end of this 2021 year if it is permitted.

I tried calling treasury direct, but remained on hold for 3 hours. I emailed them, but the response will take up to 5 days, and it is already december 22, with the holiday closures impending. Does anyone have experience with this?

thank you so much.

ltssharon



Answers
Choice
  |     |   603 posts since 2020
Opened/funded several TD accounts including trust this year…from my experience you may be asked for a so-called signature guarantee (it really isn’t that)… delays are seemingly normal but at this time of year (where else can one get 7% apy!) …you should assume that a purchase may go through in 2022 and decide if that is what you want. I also plan early 2022 funding.   You may want to consider to prepay $5+k federal taxes and have the refund made in paper ibonds for individual.   I have done the prepayment and plan (irs form 8888) to buy through refund
GreenDream
  |     |   178 posts since 2019
It sounds like the OP already has the accounts set up (IE already past the point where the so-called signature guarantee would be an issue). The clock is ticking, however, so any planned purchased for 2021 need to be made soonest otherwise, as you say, they may end up being 2022 purchases.
Ltssharon
  |     |   60 posts since 2020
Hi. Poster Ltssharon here. Thank you all. I went ahead and bought a $2000 ibond in the trust account. Right after I had pressed "submit", the Treasury Direct telephone picked up. The lady on the phone said, "YES, you can put 10 k in your individual account as well as 10K in your trust account each calendar year, both with the same social security number. I never did have to run around getting signatures, etc on real paper to open the trust account. So today I am going to run around to banks, scrape up 8K, and buy the full limit in my trust fund. The treasury direct lady also said that had I made a mistake, the treasury direct would email me a notice , and refund the money, which would take up to 10 days. So, I think that settles it. Maybe when I want to redeem these I will have to run around to banks getting certifications. Could be, but time will tell. Thank you
HollyHolly
  |     |   60 posts since 2015
You will need a signature guarantee and a special seal on a trust document. Some banks do it or your brokerage may do it. Then you have to mail it in. The Treas. Dept does not get to it the day it comes in. 10 days after I mailed the sig seal in, the Treas Dept trust acct still had not been opened. I emailed TD and asked why it had not yet been approved. Within two more days document with seal was finally approved and the acct opened. That said, you can try to buy in 2021 but expect to buy in your trust acct in 2022, not in 2021
GreenDream
  |     |   178 posts since 2019
May need, not will. Not everyone who tries to open an account with TD needs a signature medallion (I didn't when I opened mine a few years ago now). The OP mentioned that they already opened the accounts in questions, so it looks like they're already past the stage where the signature medallion would be an issue for them (indeed, they even mentioned having already purchased ibonds in one of the two accounts).
Rickny
  |     |   259 posts since 2017
When I opened a TD account a few years back I had to have a "Signature Medallion" according to the paperwork. Chase refused and had no process in place to handle TD account openeings according to the personal banker and the back office which I found hard to believe. I complained to the HQ and they contacted someone at the Treasury. Chase advised me that a cashier's stamp was all that was needed with a signature. I mailed in the paperwork and the account was opened.

Last month I opened an account for my wife and it was all done on line. I don't remember the process but it was quick.
Choice
  |     |   603 posts since 2020
Right, Rick… if one recalls/visualizes the bank stamp used for/in redeeming paper bonds, that was what my bank used and Treasury accepted it earlier this year. No guarantee.
Ltssharon
  |     |   60 posts since 2020
Poster here. It is so odd. I opened the trust without any medallion or certification or paper at all. I have now bought 10K of ibonds in the 2021 trust. I guess I will see if they go nicely through or if I get some email saying I would have needed a medallion or certification. There is just no telling at this point.
Choice
  |     |   603 posts since 2020
They like money!  Now start a business and then another TD account!
Rickny
  |     |   259 posts since 2017
Ltssharon In November I opened an account online under my wife's name and SS #. We were able to purchase bonds shortly after. No follow-up requesting paperwork. You should be fine.
Ltssharon
  |     |   60 posts since 2020
Thankyou very much
cdqueen
  |     |   73 posts since 2016
Ltssharon -- Thanks for sharing your experience with treasurydirect.gov website response to purchasers. I opened an account in Sept for 2021 and am contemplating 2022 purchase as well but my password is being refused at log in so I'm unable to access and monitor, let alone purchase additional. I've e-mailed and am finding it most unusual for a financial entity to be so unavailable, unresponsive and cavalier where they are entrusted with significant funds and the needs of their account holders to access conveniently. Providing a password reset would be the action as is with all legitimate FIs and their online apparatus. I was wondering if your interface with them has you feeling they are legitimate, or are you nervous they might be otherwise? Thank you for any information, opinion you may share.
Ltssharon
  |     |   60 posts since 2020
Poster here. I think and hope they are legitimate. I just logged in again without any password problems. Please keep us updated.
Choice
  |     |   603 posts since 2020
TD sometimes puts a hold on the account with no notice. I plan to log on later this week b/c I suspect TD may be overloaded with year end requests
GreenDream
  |     |   178 posts since 2019
" I've e-mailed and am finding it most unusual for a financial entity to be so unavailable, unresponsive and cavalier"

Welcome to the wonderful world or government run websites.
Here's a tutorial on how to reset your TD password

Individual - How To Reset Your Password (treasurydirect.gov)
(you'll have to skip forward a bit in the demo, as it starts with a demo of how to work the controls of the demo)
cdqueen
  |     |   73 posts since 2016
Big thank you to GreenDream for password reset prompt and help with where to find info. Success resetting and accessing to monitor! Few more questions if you don't mind: 1) will it take 4 months (more, other?) from date of original 9/2021 purchase for accrual amounts (above 10K) to show up? 2) what does it mean to opt for registration or not, is that a desirable thing to do per websites options, any negative consequence for opting not to? 3) Website redemption 'menu' options seem functionally intuitive-- has anyone experienced successful redemption of matured funds and does that materialize as a transfer of funds back to linked FI origin account used to fund TD instruments? Thank you in advance for assistance and HNY.
GreenDream
  |     |   178 posts since 2019
While I don't have any personal experience, according to the experience of the guy at

https://thefinancebuff.com/buy-more-i-bonds-treasury-direct-trust.html

the answer to your question would seem to be "yes it is permitted" to purchase 10k in both accounts (for a total of 20k) even though they have the same SSN.


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