Managing I-Bonds

[Captain Cactus]

Quick question on managing I Bonds, specifically buying $10,000 for each of my minor children as a way of increasing the amount my wife and I can purchase in 2022. 

I have figured out how to create a linked account for a minor within Treasury Direct, and I suspect buying $10,000 for each of the children is very straightforward.  My question is:  can I transfer those I-bonds I purchase for my minor children back over to the "parent account" at some point in the future (before they turn 18)?  Or do I need to cash them out and then repurchase?

[FIPurpose]

If you buy ibonds under your children's name, you are gifting your children money.

Putting it back under the "parent's" name is called stealing.

[Captain Cactus]

If you buy ibonds under your children's name, you are gifting your children money.

Putting it back under the "parent's" name is called stealing.

Ok, while I appreciate the cleaver response that does not really address my question.  We are all capped at $10,000/year (of course there is the tax refund method for getting $5k more).  Buying for minor children allows a family to acquire more I bonds in a single year.

Is this practice of using minor accounts to acquire more I bonds not done?  Or illegal?  I honestly don’t know, which why I’m asking. 

[EchoStache]

If you buy ibonds under your children's name, you are gifting your children money.

Putting it back under the "parent's" name is called stealing.

Totally NOT the case if they are not purchased with any intent on giving them to the kids in the first place.   Have to disagree with you on that.

OP; if you are just trying to increase the amount you can currently put in due to the extremely high current rate, don't forget that you can each purchase $10,000 as a gift to the other, then redeem next year.  They will draw interest at the current rate from the time of purchase, and also count towards next years limit when redeemed.  So if you are trying to max out every year for several years to get a large holding, this won't help tremendously other than doubling the amount you get with the current rate, vs buying next year at a potentially lower rate.

According to the Treasury Direct website FAQ's, Ibonds can be transferred between two people with treasury direct accounts.

[Captain Cactus]

Yes, you get what I’m saying.  The kids wouldn’t even know.  It’s just a way to acquire more IBonds.

Growing up, my parents “borrowed” money from my meager savings account for groceries.  They didn’t pay me back.  Is that stealing?

[EchoStache]

Yes, you get what I’m saying.  The kids wouldn’t even know.  It’s just a way to acquire more IBonds.

Growing up, my parents “borrowed” money from my meager savings account for groceries.  They didn’t pay me back.  Is that stealing?

Yes, unless they asked and you agreed.

[EvenSteven]

Putting money that is really yours in someone else’s name in order to skirt federal regulations seems like a clear cut case of fraud to me.

The chances of you getting caught are slim, but there are other, non fraud ways to buy extra i bonds. Like mentioned above, you and your spouse can gift each other as much as you want, and they will start accruing interest right away, even though you can only redeem 10k purchase price per year.

You can also set up as many trusts as you want, and each trust can buy 10k.

[Captain Cactus]

Great point about the gifting.  That’s what we’ll do cs getting minor accounts involved.  Thanks all!  Close down the thread! :)

[PDXTabs]

Growing up, my parents “borrowed” money from my meager savings account for groceries.  They didn’t pay me back.  Is that stealing?

Probably, but in a more relevant note I would expect i-bonds in your children's name to be regulated by UGMA/UTMA.