PART 346—REGULATIONS GOVERNING UNITED STATES INDIVIDUAL RETIREMENT BONDS Authority: 5 U.S.C. 301; 12 U.S.C. 391; 31 U.S.C. 3106 et seq., Source: 40 FR 4240, Jan. 28, 1975, unless otherwise noted. § 346.0 Offering of bonds. The Secretary of the Treasury, under the authority of the Second Liberty Bond Act, as amended, and pursuant to the Employee Retirement Income Security Act of 1974, offers for sale, beginning January 1, 1975, bonds of the United States, designated as United States Individual Retirement Bonds. The bonds will be available for investment only to individuals eligible to make deductions on their Federal income tax returns for retirement savings, as provided in section 2002 of the latter Act. This offering of bonds will terminate on April 30, 1982. [40 FR 4240, Jan. 28, 1975, as amended at 47 FR 18596, Apr. 30, 1982] § 346.1 Description of bonds. (a) Investment yield (interest). (1) Bonds with issue dates of January 1, 1975, through July 1, 1979—6 percent per annum, compounded semiannually (see Table of Redemption Values in the appendix). (2) Bonds with issue dates of August 1, 1979, through October 1, 1980—6.5. percent per annum, compounded semiannually (see Table A in the appendix). (3) Bonds with issue dates of November 1, 1980, through September 1, 1981—8 percent per annum, compounded semiannually (see Table B). (4) Bonds with issue dates of October 1, 1981, or thereafter—9 percent per annum, compounded semiannually (see Table C). Interest will be paid only upon redemption of the bonds. The accrual of interest will continue until the bonds are redeemed or have reached maturity, whichever is earlier, in accordance with these regulations. (b) Term. 1/2 1/2 (1) The first day of the seventh (7th) month following the 70th anniversary of the birth of the person in whose name it is registered, or (2) The first day of the sixtieth (60th) month following the date of death of the person in whose name it is registered, except that such date shall be no later than the date on which he would have attained the age of 70 1/2 (c) Denominations—issue date. issue date [40 FR 4240, Jan. 28, 1975, as amended at 42 FR 37520, July 21, 1977; 46 FR 60577, Dec. 11, 1981] § 346.2 Registration. (a) General. or (b) Inscription. [40 FR 4240, Jan. 28, 1975, as amended at 71 FR 46857, Aug. 15, 2006] § 346.3 Purchase of bonds. (a) Agencies. (b) Applications. (c) Delivery. § 346.4 Proof of purchase. At the time an Individual Retirement Bond is issued, the issuing agent will furnish therewith to the purchaser a copy of Form PD 4345 for the purchaser's personal records. The form will show the name and address of the registered owner, his date of birth, social security account number, the number of bonds issued, a description thereof by issue date, serial numbers, denominations, and registration. § 346.5 Limitation on holdings. (a) Except as provided in paragraph (b) of this section, the amount of Individual Retirement Bonds which may be registered in any one individual's name is limited to the amount for which an annual deduction may be taken under either section 219 or 220 of the Internal Revenue Code. 1 1 Note: (1) In the case of an individual electing to deduct his or her bond purchase under section 219, the face amount of bonds purchased for tax deduction in any given year may not exceed 15 percent of the individual's earned income for that year or $1,500, whichever is less. (2) In the case of an individual electing to deduct his or her bond purchases under section 220, the total face amount of bonds purchased for tax deduction in any given year in the name of the individual and in the name of his or her nonworking spouse, may not exceed 15 percent of the working spouse's earned income for that year or $1,750, whichever is less. 2 2 Note: (b) The above limitations do not apply to rollover bond purchases, as described in sections 402(a)(5), 403(a)(4), or 408(d)(3) of the Internal Revenue Code. (26 U.S.C. 220 and 31 U.S.C. 757) [42 FR 37520, July 21, 1977] § 346.6 Nontransferability. United States Individual Retirement Bonds are not transferable, and may not be sold, discounted or pledged as collateral for a loan or as security for the performance of an obligation, or for any other purpose. § 346.7 Judicial proceedings. No judicial determination will be recognized which would give effect to an attempted voluntary transfer inter vivos of an Individual Retirement Bond. Otherwise, a claim against a registered owner will be recognized when established by valid judicial proceedings, but in no case will payment be made to the purchaser at a sale under a levy or to the officer authorized to levy upon the property of the owner under appropriate process to satisfy a money judgment unless or until the bond has become eligible for authorized redemption pursuant to these regulations. Neither the Department of the Treasury nor any of its agencies will accept notices of adverse claims or of pending judicial proceedings or undertake to protect the interests of litigants who do not have possession of the bond. § 346.8 Payment or redemption during lifetime of owner. (a) During first 12 months of issue date. (b) Prior to age 59 1/2 With penalty. 1/2 (2) In case of disability. 1/2 (i) Loss of use of two limbs. (ii) Certain progressive diseases which have resulted in the physical loss or atrophy of a limb, such as diabetes, multiple sclerosis, or Buerger's disease. (iii) Disease of the heart, lungs, or blood vessels which have resulted in major loss of heart or lung reserve as evidenced by X-ray, electrocardiogram, or other objective findings, so that despite medical treatment breathlessness, pain, or fatigue is produced on slight exertion, such as walking several blocks, using public transportation, or doing small chores. (iv) Cancer which is inoperable and progressive. (v) Damage to the brain or brain abnormality which has resulted in severe loss of judgment, intellect, orientation, or memory. (vi) Mental diseases (e.g., psychosis or severe psychoneurosis) requiring continued institutionalization or constant supervision of the individual. (vii) Loss or diminution of vision to the extent that the effected individual has a central visual acuity of not better than 20/200 in the better eye after best correction, or has a limitation in the fields of vision such that the widest diameter of the visual fields subtends an angle no greater than 20 degrees. (viii) Permanent and total loss of speech. (ix) Total deafness uncorrectible by a hearing aid. In any case coming under the provisions hereof, the evidence referred to above must be submitted to the Bureau of the Fiscal Service, Division of Transactions and Rulings, Parkersburg, WV 26101, for approval before any bonds may be paid. If, after review of the evidence, the Secretary of the Treasury is satisfied that the owner's disability has been established a letter will be furnished authorizing payment of his Individual Retirement Bonds. This letter must be presented each time any of the owner's bonds are submitted for payment to a Federal Reserve Bank or Branch or to the Department of the Treasury. (c) Prior to age 70 1/2 General. 1/2 1/2 (i) Church records of birth or baptism (ii) Hospital birth record or certificate (iii) Physician's or midwife's birth record (iv) Certification of Bible or other family records (v) Military, naturalization or immigration records (vi) Other evidence of probative value. Similar documentary evidence will also be required to support any claim made by an owner that the date of birth shown on his bond is incorrect. (2) For change of investment. 1/2 (d) Requests for payment By owner. 3 3 1/2 (2) By person other than owner. 3 (e) Partial redemption. (26 U.S.C. 220 and 31 U.S.C. 757) [40 FR 4240, Jan. 28, 1975, as amended at 42 FR 37520, July 21, 1977] § 346.9 Payment or redemption after death of owner. (a) Order of precedence where owner not survived by beneficiary. (1) To the duly appointed executor or administrator of the estate of the owner, who should sign the request for payment on the back of the bond in his representative capacity before an authorized certifying officer, such request to be supported by a court certificate or a certified copy of his letters of appointment, under seal of the court, which should show that the appointment is in full force and effect, and be dated within six months of its presentation; (2) If no legal representative of the deceased registered owner's estate has been or will be appointed, to the widow or widower of the owner; (3) If none of the above, to the child or children of the owner and the descendants of deceased children by representation; (4) If none of the above, to the parents of the owner, or the survivor of them; (5) If none of the above, to other next-of-kin of the owner, as determined by the laws of the domicile of such owner at the time of his death. In any case coming under the provisions of this paragraph, a duly certified copy of the registered owner's death certificate will ordinarily be required. Proof of death of the beneficiary, if any, will be required where he predeceased the owner. Payment of bonds under paragraph (a)(1) of this section will be made by a Federal Reserve Bank or by the Bureau of the Fiscal Service, Securities Transactions Branch, Washington, DC 20226. Payment of bonds under paragraphs (a) (2) through (5) of this section will be made upon receipt of applications on Form PD 3565-1, together with the bonds and supporting evidence, by the Bureau of the Fiscal Service, Division Transactions and Rulings, Parkersburg, WV 26101. (b) Order of precedence where beneficiary survived owner. (1) To the designated beneficiary upon his presentation and surrender of the bond with the request for payment signed and duly certified; (2) If the designated beneficiary survived the registered owner but failed to present the bond for payment during his own lifetime, payment will be made in the order of precedence specified in paragraphs (a) (1) through (5) of this section to the legal representative, surviving spouse, children, parents, or next-of-kin of such beneficiary, and in the manner provided therein. In any case coming under the provisions of this subsection, a duly certified copy of the registered owner's death certificate will ordinarily be required. Proof of death of the beneficiary will also be required where he survived the owner but failed to present the bond for payment during his own lifetime. Payment of a bond to a designated beneficiary will be made by a Federal Reserve Bank or by the Bureau of the Fiscal Service, Securities Transactions Branch, Washington, DC 20226. (c) Ownership of redemption proceeds. (26 U.S.C. 220 and 31 U.S.C. 757) [40 FR 4240, Jan. 28, 1975, as amended at 42 FR 37520, July 21, 1977] § 346.10 Reissue. (a) Addition or change of beneficiary. (b) Error in issue—change of name. (26 U.S.C. 220 and 31 U.S.C. 757) [40 FR 4240, Jan. 28, 1975, as amended at 42 FR 37520, July 21, 1977] § 346.11 Use of power of attorney. No designation of an attorney, agent, or other representative to request payment or reissue on behalf of the owner, beneficiary, or other person entitled under § 346.9, other than as provided in these regulations, will be recognized. § 346.12 Lost, stolen, or destroyed bonds. If an Individual Retirement Bond is lost, stolen, or destroyed, relief will be granted upon identification of the bond and proof of its loss, theft, or destruction. A description of the bond by denomination, serial number, issue date and registration should be furnished at the time the report of loss, theft, or destruction is made. Such reports should be sent to the Bureau of the Fiscal Service, Division of Transactions and Rulings, Parkersburg, WV 26101. Full instructions for obtaining substitute bonds, or payment, in appropriate cases, will then be given. (26 U.S.C. 220 and 31 U.S.C. 757) [40 FR 4240, Jan. 28, 1975, as amended at 42 FR 37520, July 21, 1977] § 346.13 Taxation. The tax treatment provided under section 409 of the Internal Revenue Code of 1954, as amended, shall apply to all Individual Retirement Bonds. The bonds are subject to estate, inheritance, or other excise taxes, whether Federal or State, but are exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, municipality, or any local taxing authority. Inquiry concerning the application of any Federal tax to these bonds should be directed to the District Director of Internal Revenue for the district in which the taxpayer resides. § 346.14 Certifying officers. Officers authorized to certify requests for payment or for any other transaction involving Individual Retirement Bonds include: (a) Post offices. (b) Banks and trust companies. (c) Issuing agents of Series E savings bonds. (d) Foreign countries. (e) Special provisions. § 346.15 General provisions. (a) Regulations. (b) Reservation as to issue of bonds. (c) Additional requirements. (d) Waiver of requirements. (e) Fiscal agents. (f) Reservation as to terms of circular. Appendix to Part 346—Tables Table of Redemption Values Providing an Investment Yield of 6 Percent per Annum for Bonds Bearing Issue Dates Beginning January 1, 1975 Note: Period after issue date (years) Issue price Redemption values during each half-year period (values increase on first day of period shown) $50.00 $75.00 $100.00 $500.00 1st $50.00 $75.00 $100.00 $500.00 1 to 1 1 2 53.05 79.57 106.10 530.50 1 1 2 54.64 81.95 109.28 546.40 2 to 2 1 2 56.28 84.41 112.56 562.80 2 1 2 57.96 86.95 115.92 579.60 3 to 3 1 2 59.70 89.55 119.40 597.00 3 1 2 61.49 92.24 122.98 614.90 4 to 4 1 2 63.34 95.01 126.68 633.40 4 1 2 65.24 97.86 130.48 652.40 5 to 5 1 2 67.20 100.79 134.40 672.00 5 1 2 69.21 103.82 138.42 692.10 6 to 6 1 2 71.29 106.93 142.58 712.90 6 1 2 73.43 110.14 146.86 734.30 7 to 7 1 2 75.63 113.44 151.26 756.30 7 1 2 77.90 116.85 155.80 779.00 8 to 8 1 2 80.24 120.35 160.48 802.40 8 1 2 82.64 123.96 165.28 826.40 9 to 9 1 2 85.12 127.68 170.24 851.20 9 1 2 87.68 131.51 175.36 876.80 10 to 10 1 2 90.31 135.46 180.62 903.10 10 1 2 93.01 139.52 186.02 930.10 11 to 11 1 2 95.81 143.71 191.62 958.10 11 1 2 98.68 148.02 197.36 986.80 12 to 12 1 2 101.64 152.46 203.28 1,016.40 12 1 2 104.69 157.03 209.38 1,046.90 13 to 13 1 2 107.83 161.74 215.66 1,078.30 13 1 2 111.06 166.60 222.12 1,110.60 14 to 14 1 2 114.40 171.59 228.80 1,144.00 14 1 2 117.83 176.74 235.66 1,178.30 15 to 15 1 2 121.36 182.04 242.72 1,213.60 15 1 2 125.00 187.51 250.00 1,250.00 16 to 16 1 2 128.75 193.13 257.50 1,287.50 16 1 2 132.62 198.93 265.24 1,326.20 17 to 17 1 2 136.60 204.89 273.20 1,366.00 17 1 2 140.69 211.04 281.38 1,406.90 18 to 18 1 2 144.91 217.37 289.82 1,449.10 18 1 2 149.26 223.89 298.52 1,492.60 19 to 19 1 2 153.74 230.61 307.48 1,537.40 19 1 2 158.35 237.53 316.70 1,583.50 20 to 20 1 2 163.10 244.65 326.20 1,631.00 Table A—Table of Redemption Values Providing an Investment Yield of 6.50 Percent per Annum for Bonds Bearing Issue Dates Beginning Aug. 1, 1979 Note: Period after issue date (years) Issue price Redemption values during each half-year period (values increase on first day of period shown) $50 $75 $100 $500 1st $50.00 $75.00 $100.00 $500.00 1 to 1 1 2 53.30 79.95 106.60 533.00 1 1 2 55.04 82.56 110.08 550.40 2 to 2 1 2 56.82 85.23 113.64 568.20 2 1 2 58.68 88.02 117.36 586.80 3 to 3 1 2 60.58 90.87 121.16 605.80 3 1 2 62.54 93.81 125.08 625.40 4 to 4 1 2 64.58 96.87 129.16 645.80 4 1 2 66.68 100.02 133.36 666.80 5 to 5 1 2 68.84 103.26 137.68 688.40 5 1 2 71.08 106.62 142.16 710.80 6 to 6 1 2 73.40 110.10 146.80 734.00 6 1 2 75.78 113.67 151.56 757.80 7 to 7 1 2 78.24 117.36 156.48 782.40 7 1 2 80.78 121.17 161.56 807.80 8 to 8 1 2 83.40 125.10 166.80 834.00 8 1 2 86.12 129.18 172.24 861.20 9 to 9 1 2 88.92 133.38 177.84 889.20 9 1 2 91.80 137.70 183.60 918.00 10 to 10 1 2 94.80 142.20 189.60 948.00 10 1 2 97.88 146.82 195.76 978.80 11 to 11 1 2 101.06 151.59 202.12 1,010.60 11 1 2 104.34 156.51 208.68 1,043.40 12 to 12 1 2 107.72 161.58 215.44 1,077.20 12 1 2 111.22 166.83 222.44 1,112.20 13 to 13 1 2 114.84 172.26 229.68 1,148.40 13 1 2 118.58 177.87 237.16 1,185.80 14 to 14 1 2 122.44 183.66 244.88 1,224.40 14 1 2 126.42 189.63 252.84 1,264.20 15 to 15 1 2 130.52 195.78 261.04 1,305.20 15 1 2 134.76 202.14 269.52 1,347.60 16 to 16 1 2 139.14 208.71 278.28 1,391.40 16 1 2 143.66 215.49 287.32 1,436.60 17 to 17 1 2 148.34 222.51 296.68 1,483.40 17 1 2 153.16 229.74 306.32 1,531.60 18 to 18 1 2 158.12 237.18 316.24 1,581.20 18 1 2 163.26 244.89 326.52 1,632.60 19 to 19 1 2 168.58 252.87 337.16 1,685.80 19 1 2 174.06 261.09 348.12 1,740.60 20 to 20 1 2 179.72 269.58 359.44 1,797.20 Table B—Table of Redemption Values Providing an Investment Yield of 8.00 Percent Per Annum for Bonds Bearing Issue Dates Beginning November 1, 1980 Note: Period after issue date (years) Issue price Redemption values during each half-year period (values increase on first day of period shown) $50.00 $75.00 $100.00 $500.00 First half year $50.00 $75.00 $100.00 $500.00 1.0 to 1.5 54.08 81.12 108.16 540.80 1.5 to 2.0 56.24 84.36 112.48 562.40 2.0 to 2.5 58.50 87.75 117.00 585.00 2.5 to 3.0 60.84 91.26 121.68 608.40 3.0 to 3.5 63.26 94.89 126.52 632.60 3.5 to 4.0 65.80 98.70 131.60 658.00 4.0 to 4.5 68.42 102.63 136.84 684.20 4.5 to 5.0 71.16 106.74 142.32 711.60 5.0 to 5.5 74.02 111.03 148.04 740.20 5.5 to 6.0 76.98 115.47 153.96 769.80 6.0 to 6.5 80.06 120.09 160.12 800.60 6.5 to 7.0 83.26 124.89 166.52 832.60 7.0 to 7.5 86.58 129.87 173.16 865.80 7.5 to 8.0 90.04 135.06 180.08 900.40 8.0 to 8.5 93.64 140.46 187.28 936.40 8.5 to 9.0 97.40 146.10 194.80 974.00 9.0 to 9.5 101.30 151.95 202.60 1,013.00 9.5 to 10.0 105.34 158.01 210.68 1,053.40 10.0 to 10.5 109.56 164.34 219.12 1,095.60 10.5 to 11.0 113.94 170.91 227.88 1,139.40 11.0 to 11.5 118.50 177.75 237.00 1,185.00 11.5 to 12.0 123.24 184.86 246.48 1,232.40 12.0 to 12.5 128.16 192.24 256.32 1,281.60 12.5 to 13.0 133.30 199.95 266.60 1,333.00 13.0 to 13.5 138.62 207.93 277.24 1,386.20 13.5 to 14.0 144.16 216.24 288.32 1,441.60 14.0 to 14.5 149.94 224.91 299.88 1,499.40 14.5 to 15.0 155.94 233.91 311.88 1,559.40 15.0 to 15.5 162.16 243.24 324.32 1,621.60 15.5 to 16.0 168.66 252.99 337.32 1,686.60 16.0 to 16.5 175.40 263.10 350.80 1,754.00 16.5 to 17.0 182.42 273.63 364.84 1,824.20 17.0 to 17.5 189.72 284.58 379.44 1,897.20 17.5 to 18.0 197.30 295.95 394.60 1,973.00 18.0 to 18.5 205.20 307.80 410.40 2,052.00 18.5 to 19.0 213.40 320.10 426.80 2,134.00 19.0 to 19.5 221.94 332.91 443.88 2,219.40 19.5 to 20.0 230.82 346.23 461.64 2,308.20 20.0 to 20.5 240.06 360.09 480.12 2,400.60 Table C—Table of Redemption Values Providing an Investment Yield of 9.00 Percent Per Annum for Bonds Bearing Issue Dates Beginning October 1, 1981 Note: Period after issue date (years) Issue price Redemption values during each half-year period (values increase on first day of period shown) $50.00 $75.00 $100.00 $500.00 First half $50.00 $75.00 $100.00 $500.00 1.0 to 1.5 54.60 81.90 109.20 546.00 1.5 to 2.0 57.06 85.59 114.12 570.60 2.0 to 2.5 59.62 89.43 119.24 596.20 2.5 to 3.0 62.30 93.45 124.60 623.00 3.0 to 3.5 65.12 97.68 130.24 651.20 3.5 to 4.0 68.04 102.06 136.08 680.40 4.0 to 4.5 71.10 106.65 142.20 711.00 4.5 to 5.0 74.30 111.45 148.60 743.00 5.0 to 5.5 77.64 116.46 155.28 776.40 5.5 to 6.0 81.14 121.71 162.28 811.40 6.0 to 6.5 84.80 127.20 169.60 848.00 6.5 to 7.0 88.60 132.90 177.20 886.00 7.0 to 7.5 92.60 138.90 185.20 926.00 7.5 to 8.0 96.76 145.14 193.52 967.60 8.0 to 8.5 101.12 151.68 202.24 1,011.20 8.5 to 9.0 105.66 158.49 211.32 1,056.60 9.0 to 9.5 110.42 165.63 220.84 1,104.20 9.5 to 10.0 115.40 173.10 230.80 1,154.00 10.0 to 10.5 120.58 180.87 241.16 1,205.80 10.5 to 11.0 126.02 189.03 252.04 1,260.20 11.0 to 11.5 131.68 197.52 263.36 1,316.80 11.5 to 12.0 137.60 206.40 275.20 1,376.00 12.0 to 12.5 143.80 215.70 287.60 1,438.00 12.5 to 13.0 150.28 225.42 300.56 1,502.80 13.0 to 13.5 157.04 235.56 314.08 1,570.40 13.5 to 14.0 164.10 246.15 328.20 1,641.00 14.0 to 14.5 171.48 257.22 342.96 1,714.80 14.5 to 15.0 179.20 268.80 358.40 1,792.00 15.0 to 15.5 187.26 280.89 374.52 1,872.60 15.5 to 16.0 195.70 293.55 391.40 1,957.00 16.0 to 16.5 204.50 306.75 409.00 2,045.00 16.5 to 17.0 213.70 320.55 427.40 2,137.00 17.0 to 17.5 223.32 334.98 446.64 2,233.20 17.5 to 18.0 233.36 350.04 466.72 2,333.60 18.0 to 18.5 243.86 365.79 487.72 2,438.60 18.5 to 19.0 254.84 382.26 509.68 2,548.40 19.0 to 19.5 266.32 399.48 532.64 2,663.20 19.5 to 20.0 278.30 417.45 556.60 2,783.00 20.0 to 20.5 290.82 436.23 581.64 2,908.20 (26 U.S.C. 220, and 31 U.S.C. 757; 40 Stat. 288, 48 Stat. 343, as amended; 31 U.S.C. 752, 7546; 5 U.S.C. 301) [40 FR 4240, Jan. 28, 1975, as amended at 42 FR 37521, July 21, 1977; 45 FR 53397, Aug. 11, 1980; 45 FR 55178, Aug. 19, 1980; 46 FR 60577, Dec. 11, 1981]