Make Bitcoin the Workhorse of Your IRA
Do you want to capitalize on the growth potential and freedom that cryptocurrency offers—on a tax-deferred basis? If so, a Digital IRA could be an excellent option for you.
One of the best ways to reap the benefits that digital currencies can offer is to hold them in a Bitcoin IRA.
Whether you call it a Digital IRA, Cryptocurrency IRA, or Bitcoin IRA, the step you’re taking toward retirement savings is the same: you are buying cryptocurrency within a self-directed individual retirement account (SDIRA).
Let’s compare these SDIRAs to conventional IRAs, look at your IRA investment options, and even review some of the terms related to Bitcoin IRAs.
Bitcoin in a Self-Directed IRA
Although an SDIRA can serve all the functions of a conventional retirement account, there are key differences that set this family of retirement accounts apart and make it a powerful tool to leverage in diversifying your retirement savings portfolio.
Self-Directed IRA Accounts: You Choose It. You Buy It. You Manage It.
Most people don’t know about self-directed IRAs (SDIRAs), and so the concept of using them in retirement savings might be unfamiliar.
An SDIRA permits types of assets—like cryptocurrency–that most conventional retirement accounts cannot include. Conventional IRAs are far more limited, usually allowing for mutual funds, stocks, bonds, and cash, at the discretion of the financial institution managing them.
Unlike investments in conventional retirement accounts that are overseen by brokerages and financiers, in an SDIRA you maintain complete control over the investment vehicles in which your retirement savings are stored.
While a Bitcoin IRA is an SDIRA containing cryptocurrency, using a Bitcoin IRA does not limit your investment choices strictly to digital assets. Instead, the self-directed structure of this retirement account gives investors the widest range of asset options. Pick from the same asset options as conventional retirement accounts (such as stocks or mutual funds) as well as alternative assets such as digital currencies.
As a self-directed investor, you accept responsibility for the investment choices in your account. But, you engage in the cryptocurrency market by working with BitIRA to buy individual cryptocurrency assets, with your Digital Currency Specialist helping you navigate the set-up of your account. In other words, you choose, invest in and manage each asset in your account.
Although you are in charge, when you purchase digital currencies for your IRA, you work with respected partners in BitIRA and Preferred Trust Company (PTC), a certified self-directed IRA custodian who is a leader in their industry.
By opening an account with PTC, you can rest assured that they will provide all of the administrative services for your account, including making any required financial disclosures.
Your IRA Investment Options
In 2014, the IRS ruled that digital currencies should be treated as personal property for tax purposes. This makes digital currencies eligible for Digital IRA accounts.
Here is an overview of the tax implications when purchasing bitcoin and other cryptocurrencies within an IRA:
In addition, by assuming full responsibility for your investment choices, the IRS grants you legal authority to invest in a broad range of alternative assets that goes well beyond digital currencies.
Under current law, you can build your IRA by choosing:
- The type of IRA you want. A Bitcoin IRA can be set up with any of the classifications that you are used to, such as Traditional, SEP, SIMPLE and Roth IRA accounts.
- Cryptocurrency assets. These include: Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, Ripple, Zcash, and Stellar Lumens.
- Conventional IRA assets such as individual stocks and mutual funds.
- A wide variety of other alternative assets such as precious metals, tax liens, and real estate in commercial, residential, or raw land.
You can add these conventional and alternative assets to a single IRA.
Opening a Digital IRA with Bite
With BitIRA, you gain access to an easy way to start and maintain a self-directed retirement account that includes individual digital assets.
Partners in Process
It’s our mission to give you all the information you need to make this move with confidence. When you’re ready, we’re here to facilitate the entire process, before and after your purchase. Our services include:
- Explaining your investment asset options.
- Helping you to complete the paperwork.
- Overseeing rollovers.
- Assisting with contributions and distributions.
- Offering ongoing support.
Easy Account Rollovers
By working with us, it’s easy to roll over conventional assets to a new or existing Digital IRA. Our services include facilitating transfers or rollovers of assets from accounts such as the following, penalty-free and without taking distributions:
Some of these accounts have eligibility requirements before they can be transferred to a Digital IRA. Contact a BitIRA Digital Currency Specialist to determine if your current account qualifies for a rollover.
With BitIRA, you can also exchange one form of cryptocurrency into another and take cash or in-kind distributions.
Leaders in Cryptocurrency Security
We’ve made securing our customers’ investments our #1 priority.
All cryptocurrency investors must use a digital wallet. Many of these wallets are “hot” (connected to the Internet), which exposes investor credentials to potential hackers.
We are the first in our industry to give our customers a unique advantage — an insured, “cold wallet” solution that they can trust. This approach isolates customer credentials from the Internet by:
- Putting the credentials for each customer on a personal hardware device, disconnected from the Internet.
- Storing the device in a vault, protected by armed guards 24/7.
- Fully insuring assets against hacking, fraud, theft or mistakes.
See how BitIRA compares to the competition.
Discover the Opportunities of Cryptocurrency Investments
Our Digital IRA service is a full-service solution, designed to make your long-term investment secure.
Speak directly with a Digital Currency Specialist to get an in-depth explanation of the investment process. Or, ask any questions you may have and discover the opportunities currently available.
Learn how you can start receiving the benefits of a Digital IRA. Contact BitIRA at (800) 299-1567 today.