In recent years Bitcoin has been gaining in value as well as traction as an investment. It was only a matter of time when it will be included in an IRA account.
You can hold bitcoin in an IRA but you have to make a few provisions before you can.
Is Bitcoin a viable IRA asset?
The IRS guidelines are a bit unclear when it comes to Bitcoins. Current rules don’t allow the next types of assets to be included in an IRA:
- Metals – except certain kinds of bullion
- Alcoholic drinks
- Other tangible personal property
- Coins (with a few exceptions)
As you can see, Bitcoin doesn’t fall directly in to any of the categories. IRS hasn’t specifically ruled on the acceptance, so the whole industry is moving slowly towards acceptance.
How To Invest Bitcoin In An IRA? Find an IRA Custodian That Accepts Bitcoin Investments
If you are considering to add Bitcoin to your IRA account, you need to find a custodian that is willing to accept them. Most of the IRA custodians don’t accept it for now but our prediction is that this will change in the following months/years. Most consider it a too speculative to be held as a retirement asset.
IRA Custodians that accept Bitcoin
- Regal Assets (our recommendation)
- Millennium Trust Company
- The Entrust Group
- PENSCO Trust Company
Regal Assets – a INC. 500 company with a 100% customer satisfaction since they’ve been in business. They started of with precious metals IRA Rollovers and are accredited with the BBB, BCA, Trustlink and many others. You can read more in our Regal Assets Review.
How does a Bitcoin IRA work?
In a nutshell it works the same as any other type of IRA. You fill out a form and invest. If you are under 70.5 years of age you have a option to invest (with pre-taxed assets) in traditional IRA or (with after-taxed assets) in a Roth IRA. You cannot take distributions out of traditional or roth IRA without a penalty, unless you are at least 59.5 years old. The same goes for employees that are invested in the employers 401K before the age of 59.5.
When Investing in a Bitcoin IRA it is still handled through a custodian. Because this is a fairly new form of investment, only certain custodians handle them.
Talk to a BitcoinIRA specialist which will help you choose the right plan for your current situation and answer all the questions you have. We recommend giving Regal Assets a call.
Should You Invest In a Bitcoin IRA Instead Of Gold IRA?
If you think that Bitcoin will be a good investment it most certainly makes sense to hold it as an IRA investment. Just make sure you find the right custodian that accepts it and has enough experience and positive reviews to guide you through the process.
Please understand that the current state of Bitcoin as an investment and currency is still being worked on. Be aware that is there is a risks involved with this type of asset.
Given all of the above, it would be best to invest in small portions. If it holds you have a potential to make a fortune with even a small investment. But if Bitcoin doesn’t hold, you won’t lose a whole lot.