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Trusts, LLC’s, and other businesses can also open up “entity accounts” at TreasuryDirect under their EIN’s, for buying up to $10k of I Bonds per year, or other
by Asparagirl 4y ago
Trusts, LLC’s, and other businesses can also open up “entity accounts” at TreasuryDirect under their EIN’s, for buying up to $10k of I Bonds per year, or other types of treasuries.
And those of us with kids under eighteen years old can open up “linked” minor sub-accounts in their names, which are linked to the parent’s primary account at TreasuryDirect but which can buy up to $10k of I Bonds per year in each child’s name.
At some point, spinning up some new LLC’s and/or offspring just to get more access may become advantageous.
- toomuchtodo 4y agoI bonds for children are considered irrevocable gifts, and the proceeds must be used for the benefit of the child (to do otherwise is considered tax fraud). Important context to know before purchasing.
- Asparagirl 4y agoSo the same rules as UTMA accounts, yes? Except the kids’ UTMA accounts at the local bank get essentially 0% interest rates (or slightly more with long-term CD’s), while TreasuryDirect I Bonds get them over 7%. And perhaps this will also provide an incentive for the kids to not blow all their money so easily some day, when they’re of age to receive it, since the bonds if unsold will keep accumulating interest for 30 years (by which point the kids will be middle-aged and hopefully more mature), the clunky TreasuryDirect web interface makes it hard for them to sell and transfer proceeds anyway, and none of it is linked to a debit card like an UTMA bank account or UTMA brokerage account. Sounds like a pretty good piggy bank.
- toomuchtodo 4y agoAll true. My comment was because some parents believe they can use their kids’ SSN as a strawman to buy more I bonds, not a bonafide gift to the minor.