What does Restricted Security mean in TreasuryDirect?
Thursday, March 5th, 2009
Categorized as: Treasury Direct
In 2008, I purchased $5,000 worth of I bonds through TreasuryDirect and $5,000 in paper. At the end of the year, I converted the paper to electronic. On the list of converted bonds, I had some others from much earlier years, the 2008 bond is noted with the status of “Restricted Security.” None of the others, in the converted or non-converted account indicate this status. What does this mean?
Tom’s response
In general, you can do anything with a converted Savings Bond in TreasuryDirect that you can do with one purchased there directly. However, removing or changing the name of a co-owner on converted Series E, EE, or I bonds, or removing or changing a beneficiary on converted Series E bonds, requires the permission of the person whose name is being removed. This can’t be done online. The Restricted Security designation means that this particular bond is one that would require an offline form to change the registration in this manner.
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Tom Adams
Hi Tom:
Thanks very much for clearing that up.
I would like to remove a co-owner who has passed on. However, I could only find Form 4000 which is for Paper Bonds. What is the procedure for removing a co-owner under TreasuryDirect?
Thank you,
Paul
Paul – the info you’re looking for is here.
Tom Adams
Can I add a beneficiary on to my savings bond if he lives overseas and is not a U.S. citizen?
Sohui – you can, but that person may have a difficult time cashing the bond if you die.
Tom Adams