Learn More About SellDirectSM
Do you want to sell a Treasury security prior to its maturity? TreasuryDirect can help you do it, quickly and easily. You may sell 13-Week, 26-Week, and 52-Week Bills, as well as Notes, Bonds, and TIPS simply by selecting a single security or multiple securities in SellDirect. Choose to sell a portion or the full amount of a security for a single transaction. Multiple sales are available by selecting up to 50 securities in one transaction with the proceeds deposited to one payment destination. The full amount of each security must be sold when you sell multiple securities. All sales must be in increments of $100. Just provide your payment destination and TreasuryDirect does the rest!
Securities are, however, subject to a mandatory holding period from the original date of issue in your TreasuryDirect account. 13-Week, 26-Week, and 52-Week Bills, as well as Notes, Bonds, and TIPS have a 45-day holding period. The mandatory holding period applies to the full term of the 4-Week Bill. Once this holding period has ended, your securities are listed as eligible for SellDirect. Additionally, any sales that subsequently fall into the Closed Book Period (see Transaction Restrictions) could be rejected and returned to your Current Holdings or delayed in processing. These transactions may be processed once the security is free of the holding period. Pending sales that reach final maturity during the Closed Book Period are paid to the original payment destination.
TreasuryDirect submits all your sale requests to the Federal Reserve Bank (FRB) of Chicago (a fiscal agent of the U.S. Treasury). By submitting a SellDirect request, you authorize FRB Chicago to sell the security, and to charge you a transaction fee of $45.00 for each security. This fee is automatically deducted from the proceeds of the sale before deposit to your designated payment destination.
Here´s how it works. FRB Chicago makes every effort to obtain a price quote from at least three government security dealers. They sell the security to the dealer with the highest price quote. By initiating this transaction, you agree to accept the price received by FRB Chicago from the dealer with the highest price quote. Your sale amount, minus the transaction fee, is deposited in your selected payment destination account the day following the sale. Prior to submitting your request, we recommend you verify your payment destination. Any incorrect information could delay your final payment.
Federal tax reporting regulations apply to all SellDirect transactions. FRB Chicago provides the appropriate 1099 statement reporting the amount paid to you from the sale of TreasuryDirect securities. In addition, you´ll receive a statement detailing the transaction fees incurred, which may be deducted from the gross proceeds reported as earned income on your taxes. TreasuryDirect will not calculate your reportable proceeds from SellDirect. TreasuryDirect also gives you the option to grant Transact rights to the second-named registrant of the security, so any SellDirect transactions performed by a designated grantee are reportable to you. For more information and exceptions to tax reporting rules, see Learn more about Tax Reporting.
Important Reminder! If you decide to sell a security prior to maturity, any future purchases you have scheduled may be affected. For example, if you submitted a purchase request or repeat purchase schedule using the Maturing Proceeds of this security as the source of funding, the next purchase may be canceled if funds are insufficient to cover the purchase request.