To start your own Cryptocurrency IRA call 800-394-3337
1. What is a Cryptocurrency IRA and How Does It Work?
A cryptocurrency IRA is a Self Directed Individual Retirement Account that owns cryptocurrencies held in an offline secure storage vault for the sole benefit of its owner.
2. History of Cryptocurrency IRA’s
On January 9, 2009, Bitcoin became the first cryptocurrency which utilizes blockchain technology. But it wasn’t until March 25th, 2014, that the IRS issued Notice 2014-21 declaring, “Virtual currency is treated as property for U.S. federal tax purposes.” That declaration opened the door for U.S. citizens to own cryptocurrencies in their IRA’s and 401k’s.
According to the Internal Revenue Service IRS Code 408, only two investments are jknot permitted in retirement accounts, collectibles and life insurance policies.
3. Can I Hold Cryptocurrencies in My IRA and 401k?
Yes. CryptocurrencyIRA.com makes it easy for you to hold digital currencies inside both Traditional and Roth IRA’s. However, it's unlikely that your currency custodian offers this service.
If you have a 401k with a previous employer it can be rolled-over to a cryptocurrency IRA. If you are still employed with the firm that set up your 401k, and are over 59.5 years of age, you may be eligible for an in-service distribution, allowing you to rollover a portion of your account to a cryptocurrency IRA.
If you have a 403(b), 457(b) or Thrift Savings Plan with a previous employer you can roll them over to a cryptocurrency IRA. If you’re still employed with them and are over 59.5, you may be eligible for a partial in-service distribution. Call Cryptocurrency IRA now at (800) 767-1423 to confirm eligibility.
4. How To Set Up a Cryptocurrency IRA Using My Existing Retirement Account
Setting up a Cryptocurrency IRA is as easy as completing an online application. This enables us to establish your new Self Directed IRA and authorizes the transfer of funds from your current custodian.
If your existing retirement account is a 401(k), 403(b), 457(b) or a TSP, you will have to execute a rollover to fund your new Self Directed IRA. Your rollover can be initiated by a phone call to your existing plan provider. Our cryptocurrency IRA specialists will walk you through the process that typically takes 2-4 weeks to complete.kjl
5. Is Transferring to a Cryptocurrency IRA a Taxable Event?
No. If you are moving funds from one qualified account to another it is not a taxable event. Your cryptocurrency IRA will benefit from the same tax deferred status as your existing retirement account. Roth account holders will enjoy the same tax free status in their new Self Directed cryptocurrency IRAs.
6. Who Will Be My New Custodian for My Cryptocurrency IRA?
Cryptocurrency IRA uses Equity Trust as our clients digital currency custodian. Equity Trust is the leader in secured, cold storage, digital currency transactions. Equity Trust was established in 1974 and currently has over $27.8 billion in assets under custody.
7. Designating a Representative for your Cryptocurrency IRA
Equity Trusts digital currency platform requires a trained Cryptocurrency IRA specialist to execute the trades you’ve authorized. Therefore you must assign a CryptocurrencyIRA.com designated representative on your application.
8. How Do I Buy and Sell Cryptocurrencies Inside My New IRA?
Once your funds have been transferred to Equity Trust, your CryptocurrencyIRA.com specialist will contact you to initiate your purchase. All buy and sell transactions must be authorized by you, the account holder. CryptocurrencyIRA.com records and archives all purchase and sale transaction phone calls.
Upon execution of a trade, your Equity Trust account is updated (in real time) to reflect your transaction details.
9. Types of Cryptocurrencies You Can Hold in Your Cryptocurrency IRA
● Bitcoin (XBT) lk
● Ethereum (ETH)
● Bitcoin Cash (BCH)
● Bitcoin SV (BSV)
● Ethereum Classic (ETC)
● Litecoin (LTC)
● Stellar (XLM)
● ZCash (ZEC)
10. Where Is My Cryptocurrency Stored?
Once your transaction is complete, Equity Trust moves your cryptocurrency from hot storage to cold storage. Equity Trust provides the most secure, offline, air-gapped cold storage, using military grade, multi signature encryption.
There are two different types of cryptocurrency storage, hot and cold. Hot is when your storage device is connected to the internet. This can be more convenient if you're actively trading, moving assets frequently, or using crypto currencies for everyday transactions. Hot storage is by far the less secure of the two options.
Cold storage is when your cryptocurrency hardware storage device is not connected to the internet. Offline secure servers in a safe room have proven to be the optimal method of protecting digital currencies.
11. Is My Cryptocurrency IRA Insured?
Yes. Throughout the entire process your cryptocurrency is insured by a commercial crime policy that covers loss, damage, destruction and theft of assets.
12. The Fees/Costs Associated with a Cryptocurrency IRA[1]
The Equity Trust custodial fees to establish your new cryptocurrency IRA are as follows:
In addition to the custodian fees listed above, every Cryptocurrency IRA company charges a purchase fee of between 8.5% and 15%. CryptocurrencyIRA.com is a market beater and will always charge 1% less than any other firm in the nation. Currently our purchase fee is 7.5%. We do not charge you to liquidate.
13. Don’t Be Mislead By “Best Bitcoin IRA’s and Cryptocurrency IRA’s” Review Sites
Beware of so-called “independent” websites that post “reviews” of the Best Bitcoin or Cryptocurrency IRA companies. Although these sites may seem helpful initially they are anything but independent. In fact, they are paid affiliates of the companies they are “reviewing”.
The affiliate website will typically make an initial fee and receive a percentage of your overall account value.
Below are examples of “Best Bitcoin/Cryptocurrency IRA Companies” paid affiliate
“We may earn money from our partners when you click a link, complete a form or call a phone number.”
14. How To Choose A Reputable Dealer For Your Cryptocurrency IRA
Choosing the right cryptocurrency IRA provider is crucial. And being that cryptocurrency IRAs have only existed for a few years, it’s impossible to choose a company with a decades long track record. However, many Cryptocurrency IRA companies are subsidiaries of gold dealers whose reputation you can look into.
Start by checking the Better Business Bureau profiles of the cryptocurrency IRA provider you’re researching. Next, look at the profile for the parent company. Accept nothing less than an A+ reputation, but more importantly, confirm how many complaints the company has. Reputable dealers that pride themselves on providing exemplary customer service won’t have any. If the cryptocurrency IRA provider or it’s parent company have multiple unresolved complaints, that’s a red flag.
15. How Have Bitcoin IRAs Performed?
The Bitcoin chart below shows the price movement from March 25, 2014, (IRS Approval) through February 22, 2021.
If you invested $10,000 in Bitcoin the first day they were approved for your IRA, you would have bought 21.92 coins at $456 each. As of Feb 22nd, 2021, with Bitcoin trading at $57,282.11, your account value would be $1,255,623.80.
16. Is Investing in Cryptocurrencies Safe?
Like all investments, there are risks associated with investing in cryptocurrencies inside or outside of a retirement account. In fact, number 17 of the Essential Cryptocurrency IRA Rollover Facts is dedicated to the speculative nature of digital currency investments. Remember, nobody knows for certain what will happen in the future.
What we do know is Bitcoin and many other cryptocurrencies are being embraced by hedge funds, institutional traders and corporate titans.
Take MicroStrategy (MSTR) for example. The founder and CEO Michael Saylor, recently invested $1.1 billion of the company's treasury in Bitcoin. Michael said, “The Company continues to believe Bitcoin will provide the opportunity for better returns and preserve the value of our capital over time compared to holding cash.”
Or Elon Musk who recently purchased $1.5 billion worth of Bitcoin for Tesla. Elon stated. “I think Bitcoin is on the verge of getting broad acceptance from traditional finance people.”
It was recently discovered that Tesla made more money in 2020 from their Bitcoin investment than they did from their auto sales.kljkl
Below are actual quotes from sophisticated investors.
“I think Bitcoin is on the verge of getting broad acceptance from traditional finance people.” - Elon Musk, Co-Founder and CEO of Tesla recently purchased $1.5 billion worth of Bitcoin
“I really like Bitcoin. I own Bitcoins. It’s a store of value, a distributed ledger. It’s a great place to put assets, especially in places like Argentina with 40 percent inflation, where $1 today is worth 60 cents in a year, and a government’s currency does not hold value.” - David Marcus, CEO of Paypal
“Virtual Currencies may hold long-term promise, particularly if the innovations promote a faster, more secure and more efficient payment system.” – Ben Bernanke
“I do think Bitcoin is the first encrypted money that has the potential to do something like change the world.” – Peter Thiel, Co-Founder of Paypal
“You can’t stop things like Bitcoin. It will be everywhere and the world will have to readjust. World governments will have to readjust.” – John McAfee
“Bitcoin, and the ideas behind it, will be a disrupter to the traditional notions of currency. In the end, currency will be better for it.” – Edmund C. Moy, Former Director US Mint
“Bitcoins are like gold bars with wings. That is why I, and so many others, view bitcoin and its network as gold 2.0. – Tyler Winklevoss
“Bitcoin is the most important invention in the history of the world since the Internet.” – Roger Ver
“Gold is a great way to preserve wealth, but it is hard to move around. You do need some kind of alternative and Bitcoin fits the bill.” – Jim Rickards
“Every informed person needs to know about Bitcoin because it might be one of the world’s most important developments.” – Leon Luow
"Bitcoin could be an asset class that has a lot of attraction as a store of value to both millennials and the new West Coast money and, as you know, they got a lot of it.” - Stanley Druckenmiller, Billionaire Hedge Fund Manager
“I like Bitcoin even more now than I did then. I think we are in the first inning of bitcoin and it’s got a long way to go. Bitcoin has this enormous contingence of really, really smart and sophisticated people who believe in it. It’s like investing with Steve Jobs and Apple or investing in Google early.” - Paul Tudor Jones, Billionaire Hedge Fund Manager
Disclaimer: Cryptocurrency IRA trades in high risk assets: Your cryptocurrency IRA may experience volatile price swings or possibly become worthless. The IRS has classified digital currencies as property. CryptocurrencyIRA.com website and employees do not offer tax, legal or investment advice. For tax, legal, and investment questions, contact your accountant, attorney or financial professional. The Cryptocurrency IRA website is owned and operated by Janguard Inc, call 800-394-3337.