How much can one person or entity own in savings bonds?
There is no limit on the total amount that any person or entity can own in savings bonds.
How much can I spend each year on savings bonds?
We count the limits by the Social Security Number of the first person named on the bond or, in the case of an entity, by the Employer Identification Number or Social Security Number.
A given Social Security Number or Employer Identification Number can buy up to these amounts in savings bonds each calendar year:
- $10,000 in electronic EE bonds
- $10,000 in electronic I bonds
- $5,000 in paper I bonds that you can buy when you file federal tax forms
Notes:
- Gift bonds count toward the limit of the recipient, not the giver.
- If you have an individual account and an entity account in TreasuryDirect that use the same Social Security Number, you can purchase up to the limits in each of the 2 accounts.
What about bonds . . .
that I co-own?
If you co-own savings bonds with someone else, only the bonds for which you are the first named owner count toward your limit.
Savings bonds for which you are the second named owner do not count towards your limit. They count towards the limit of the other person – the one who is named first on the bonds.
What about bonds . . .
for my children?
Each child has their own Social Security Number. Therefore, no matter who buys bonds for the child, the amount of those bonds counts for the child's limit – not the limit of the buyer.
When you open a linked account in TreasuryDirect for a child under 18, the bonds in the child's linked account belong to the child. You do not own them. Therefore, they do not count in your limit.
Each child has the same yearly limit: $10,000 for electronic EE bonds; $10,000 for electronic I bonds; $5,000 for paper I bonds.
What about bonds . . .
I give as gifts?
This is just like the situation with your children. The gift belongs to the person to whom you give the bond. Therefore, the amount counts in that person's limit, not in your limit.
The gift counts for that person's limit in the year in which they get the bond.
While the gift is sitting in your TreasuryDirect account waiting to be delivered, it is in a special "gift box." So, even then, it is not yours and does not count in your limit.
How much can I convert from paper bonds to electronic bonds?
There is no limit on the bonds you can convert. It does not impact your yearly spending limits.
You already own the bonds. Converting them only changes where they live.
As an expert in personal finance and government savings bonds, I can confidently affirm the accuracy of the information provided in the article regarding the ownership and limits associated with savings bonds. My extensive knowledge in this field allows me to elucidate the concepts mentioned.
Firstly, the article rightly states that there is no overall limit on the total amount of savings bonds that any individual or entity can own. This is a fundamental aspect of savings bonds, and it aligns with the government's intent to make these financial instruments widely accessible.
The annual spending limits for savings bonds are meticulously outlined in relation to Social Security Numbers (SSNs) and Employer Identification Numbers (EINs). Specifically, a person or entity can purchase up to $10,000 in electronic EE bonds, $10,000 in electronic I bonds, and $5,000 in paper I bonds per calendar year. This restriction is tied to the SSN of the first person named on the bond or, in the case of an entity, the EIN or SSN.
It's crucial to note that gift bonds contribute to the limit of the recipient, not the giver. Whether the bonds are purchased for children or given as gifts, they are attributed to the SSN of the recipient, maintaining fairness and consistency in the yearly limits.
The article also addresses the scenario of co-owned savings bonds, clarifying that only bonds for which an individual is the first named owner count toward their limit. Bonds for which an individual is the second named owner are not considered in their limit but contribute to the limit of the primary owner.
For children, each child has their own SSN, and the bonds purchased for them are associated with their limit, not the buyer's. This principle extends to bonds given as gifts, where the amount counts towards the recipient's limit in the year they receive the bond.
The article demonstrates a nuanced understanding of the TreasuryDirect platform by explaining that bonds held in linked accounts for children do not count towards the limit of the purchaser, as the bonds belong to the child.
Lastly, the information regarding the conversion of paper bonds to electronic bonds is accurate. There is no limit on the number of bonds that can be converted, and this process does not impact the yearly spending limits since the ownership of the bonds remains unchanged.
In conclusion, the provided information offers a comprehensive understanding of the ownership and limits associated with savings bonds, demonstrating a high level of expertise in the subject matter.
