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 a seasoned financial expert with a profound understanding of savings bonds and their intricacies, I bring a wealth of knowledge and hands-on experience to elucidate the concepts embedded in the provided information.
Firstly, let's delve into the central theme: the ownership limits of savings bonds. The assertion that there is no limit on the total amount that any person or entity can own in savings bonds holds true. This is a fundamental aspect of savings bonds, and understanding the nuances of ownership is crucial.
The limitations on yearly purchases are delineated by Social Security Numbers for individuals or Employer Identification Numbers for entities. For the primary Social Security Number or Employer Identification Number, the following annual limits apply:
- $10,000 in electronic EE bonds
- $10,000 in electronic I bonds
- $5,000 in paper I bonds (which can be purchased when filing federal tax forms)
An interesting facet is the treatment of gift bonds, where the amount contributes to the limit of the recipient, not the giver. This extends to both individual and entity accounts, and if these accounts share the same Social Security Number, the purchase limits apply to each.
Furthermore, co-ownership of savings bonds has a distinct impact on limits. Only bonds for which an individual is the first named owner count toward their limit. Bonds for which they are the second named owner do not affect their limit but instead contribute to the limit of the primary bondholder.
The dynamics shift when considering bonds for children. Each child, with their unique Social Security Number, has specific yearly limits: $10,000 for electronic EE bonds, $10,000 for electronic I bonds, and $5,000 for paper I bonds. Notably, when purchased through a linked account in TreasuryDirect for a child under 18, the bonds belong to the child and do not count toward the parent's limit.
Gift bonds mirror this principle, aligning with the idea that the recipient's limit is impacted, not the giver's. The gift counts for the recipient in the year they receive the bond, emphasizing that ownership determines the applicable limit.
Lastly, the flexibility to convert paper bonds to electronic bonds is highlighted, emphasizing that such conversions do not impose additional limits. The crucial point here is that the act of conversion doesn't impact yearly spending limits, as the ownership remains unchanged.
In essence, a nuanced comprehension of savings bond ownership, yearly limits, and the intricacies of gifting and co-ownership is indispensable for making informed financial decisions in this domain.
