User Guide Sections 261 Through 270 — TreasuryDirect (2024)

Learn More About Treasury Marketable Security Transfers

To protect the security of your investments, in certain instances you must complete a Transfer Request (FS Form 5511) to transfer one or more securities from your account. The form must be signed in the presence of an authorized certifying official available at a bank, trust company, or credit union, and mailed to us for processing. (Certification by a Notary Public is not acceptable.) Customer service personnel will perform the transfer when the form is received and approved. You'll receive an e-mail confirming that activity has occurred in your account.

TreasuryDirect requires Treasury Marketable Securities be held for 45 days following original issue before they may be externally transferred. 4-Week Bills bought at original issue in TreasuryDirect may not be transferred at all because the 28-day term is less than the required 45-day holding period. The mandatory original issue holding period also applies to securities issued through reinvestment which were not fully funded from the maturing security. Transfer forms received during the original issue holding period will be processed once the holding period ends. Note: Securities transferred into your TreasuryDirect account from a broker or from your Legacy TreasuryDirect account are not subject to the holding period.

Transfer forms that are received during the Closed Book Period (see Transaction Restrictions ) will not be processed until the Closed Book Period ends. If the securities are scheduled to mature at the end of the Closed Book Period, they will be paid.

For securities issued through reinvestment, see Learn more about Reinvesting Maturing Proceeds .

Whenever a transfer is completed in your account, TreasuryDirect calculates the reportable proceeds amount from the time the Treasury marketable security was issued in your account. All your taxable transactions are available with your online, printable IRS Form 1099 each calendar year. For individual accounts, TreasuryDirect also gives you the option to grant Transact rights to the second-named registrant of the security, so any transfer transactions performed by a designated grantee are reportable to your TreasuryDirect account. For more information and exceptions to tax reporting rules, see Learn more about Tax Reporting . Transact rights are not available in entity accounts.

Internal - To another TreasuryDirect account holder

You may transfer Treasury Marketable Securities in increments of $100. You may choose to transfer a portion or the full amount of a security for a single transfer. Multiple securities can be transferred at one time to a single recipient, but if this option is chosen, the full amount of each security must be transferred.

External - Out of TreasuryDirect

You may transfer Treasury Marketable Securities in increments of $100. You may choose to transfer a portion or the full amount of a security or multiple securities for a single transfer.

Before completing the form for any external transfer, we strongly recommend you contact the receiving financial institution for the correct routing number, bank name, and special handling instructions. When your Treasury marketable securities are transferred externally, TreasuryDirect removes them from your account and transmits your transaction in accordance with the provisions cited in 31 CFR Parts 356, 357, and 363. The transaction could be rejected or delayed in processing if the handling instructions are invalid.

To sell Treasury marketable securities that are in your TreasuryDirect account, you must transfer the securities to a broker/dealer account. The broker/dealer can sell the securities for you.

Incoming External

• From a broker into your TreasuryDirect account: You may contact your broker to transfer Treasury marketable securities you own in another account to your online TreasuryDirect account. To transfer securities through a broker, you will need to use the following delivery information: Receiving bank name – TREASURYDIRECT (all caps, no space), ABA #051736158, and your TreasuryDirect account number (without dashes and spaces).
• From Legacy TreasuryDirect into your TreasuryDirect account: You may also move eligible Treasury marketable securities from your Legacy TreasuryDirect account to your online TreasuryDirect account without using a broker by completing a Security Transfer Request, FS Form 5179. Incoming transfers are released into the Current Holdings of your TreasuryDirect account.

Customer Service representatives submit all verified incoming transfer requests for release into your Current Holdings. Incoming transfers are issued using your primary TreasuryDirect account owner name as the registration for the securities, and with your Primary Bank information as the payment destination for maturity and interest (if applicable) payments. Once securities are issued into your account, you may edit this destination, and you may edit the registration for the securities in an individual account. Note: You may not change the registration for the securities in an Entity account. For incoming transfers, TreasuryDirect uses the price per $100 that was determined at auction. If the price you paid was different contact Customer Service.

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Learn More About Tax Reporting

TreasuryDirect provides you with a detailed listing of all your taxable transactions, as well as an online, printable IRS Form 1099 for each calendar year. You may access this information in ManageDirect_® - Manage My Taxes in your primary account and each linked account.

Taxable transactions include partial/full redemptions or transfers (internal and external), and maturities initiated by you or a designated grantee (in certain instances). The information displayed on your summary page and IRS Form 1099 is furnished each year to the Internal Revenue Service. According to IRS rules, you may be subject to up to three different types of tax reporting, depending upon the type of security and the transaction performed.

1099-INT

This section displays any transactions where you received interest income. This interest may have been earned from a partial/full redemption, transfer, or maturity of a savings bond. Interest will also be reported if you received semi-annual interest payments from a Treasury marketable security as the account holder or as the grantee. See IRS Pub. 550 Investment Income and Expenses, for more information.

Nominees

If this form includes amounts belonging to another person(s), you are considered a nominee recipient. Complete a Form 1099-INT for each of the other owners showing the income allocable to each. File Copy A of the form with the IRS. Copy B to each owner. List yourself as the "payer" and the other owner(s) as the "recipient." File Form(s) 1099-INT with Form 1096, Annual Summary and Transmittal of U.S. Information Returns, with the Internal Revenue Service Center for your area. On Form 1096 list yourself as the "filer." A husband or wife is not required to file a nominee return to show amounts owned by the other.

1099-B

This section includes maturities of all covered securities. Additionally for non-covered securities, this section displays any transactions where you received proceeds from the maturity of a Treasury marketable security that was not purchased at original issue. This means that if you received one of these securities from a transfer, either internal or external, the principal amount of this security is reportable in your account. This reporting only occurs when the security matures. Furthermore, this form is always reported to your account, regardless of any action performed by a grantee.

A "covered" Treasury marketable security refers to a Treasury Note or Bond that was purchased on or after January 1, 2014, and a Floating Rate Note (FRN) or Treasury Inflation Protected Security (TIPS) that was purchased on or after January 1, 2016.

A "non-covered" Treasury marketable refers to a Treasury Note or Bond that was purchased prior to January 1, 2014, and an FRN or TIPS that was purchased prior to January 1, 2016. Treasury bills are considered non-covered Treasury marketable securities regardless of purchase date and are therefore excluded from reporting.

1099-OID

Any increase or decrease in the inflation adjusted principal amount of an inflation-indexed debt instrument (other than a Series I U.S. Savings Bond) that occurred while you held the instrument during the year is reported as Original Issue Discount (OID.) In general, an inflation-indexed debt instrument is a debt instrument on which the payments are adjusted for inflation and deflation such as Treasury Inflation-Protected Securities (TIPS). For more information, please see the IRS Publication 1212, Guide to Original Issue Discount (OID) Instruments.

Reporting Exceptions

• Transfers sent to the same Taxpayer Identification Number listed on your account are excluded from tax liability. Note: This rule does not apply to the transfer of TIPS.
• If a converted savings bond with a Co-Owner registration type is redeemed by the second-named registrant (or grantee), the interest is reported to the grantee. (Individual Accounts only).
• If a maturity payment for a Bill is sent to the grantee's selected payment destination, the interest is reported to the grantee. (Individual Accounts only).
• If the interest payment for a Treasury Marketable Security is sent to the grantee's selected payment destination, the interest is reported to the grantee. (Individual Accounts only).

Federal Income Tax Withheld

This column in each section displays the percentage amount of designated backup withholding applied involuntarily or voluntarily. The IRS current involuntary backup withholding rate is set at a 24% rate. You may select voluntary backup withholding up to a 50% rate. Remember to include this amount on your income tax return as tax withheld.

Bond Premium and Market Discount

For more information regarding the reporting of bond premium amortization and market discount accrual, please refer to IRS publication 550.

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