Featured Savings Rates
Featured Accounts

Exceeding The US Savings Bond Annual Purchase Limit

rav
rav   |     |   36 posts since 2010

Is it possible to exceed the $10,000 annual limit for purchasing I Savings Bonds by buying gifts for each other?  For example, if I bought $10k, my wife bought $10k, our daughter bought $10k, and then we gave each of the others gifts of $10k, could we together effectively purchase $90,000 worth of savings bonds?



Answers
pearlbrown
pearlbrown   |     |   2,276 posts since 2010
No.  The limit is for the purchase and you are limited to $10K per SSN or TIN.  It doesn't matter what you do with the bonds after purchase. 

A Savings Bond you give as a gift is purchased using the name and SSN of the recipient.  The purchase counts against the annual limit of the recipient.  So you can purchase a $10K bond as a gift for your daughter but it will count against her limit.

This may answer other questions
rav
rav   |     |   36 posts since 2010
Thanks for the link pearlbrown -- very helpful (and I just voted it so :-)  From that FAQ on the annual limit:
Do bonds I've bought as gifts through TreasuryDirect but have not yet delivered to the gift recipient apply against my annual limit? 

No. Gift bonds are purchased in the name and SSN of the gift recipient. They do not count against your annual limit even if you have purchased them through your TreasuryDirect account but have not yet delivered them. Gift purchases in TreasuryDirect count toward the annual limit of the recipient in the year they are delivered.

It's subtle, but does look as if you can purchase them as a gift for someone else without affecting your or the recipient's annual limit, so long as the bonds are NOT DELIVERED to the recipient's treasury direct account.  They only count towards the recipient's annual purchase limit IN THE YEAR THEY ARE DELIVERED.  So, if you want to buy the extra this year, and deliver them in some future year when the recipient doesn't buy any, it says that you can do so.

 
pearlbrown
pearlbrown   |     |   2,276 posts since 2010
The devil (and sometimes the opportunity) hides in the details.  This may be helpful.  Good luck!