In recent years Bitcoin has been gaining in value as well as traction as an investment. It was only a matter of time when an bitcoin IRA would become available.
Bitcoin is the world renowned and leading original digital currency that the mysterious individual or group of individuals under the pen name Satoshi Nakamoto developed in 2009. As the first way to anonymously send money from an entity or person to another while eliminating the middle man like a bank, it is a completely non government controlled and fully decentralized currency regime which though it has no legal tender currency status, is widely accepted at a range of businesses around the globe.
Among the many advantages to Bitcoin is the fact that the security governing its protocols is both public and private “keys.” These are actually extremely long strings of numbers and letter that have a mathematically based encryption which link them in the form of a complex algorithm. The public key functions as would a bank account number in a financial transaction. It is the private key that works much like a PIN number for your ATM card. This secret must be carefully guarded as you provide final authorization on any Bitcoin transmission transactions. If it is stolen, your Bitcoin inventory can easily be raided by online hackers.
Though Bitcoin has been deemed a greatly speculative investment for years now, it has seen massive increases whereby only a hundred dollars invested in it back in 2009 would be worth literally millions of dollars today. Some analysts claim that in under ten years, the value of the BTC could exceed $100,000 per single coin. Unfortunately, such massive gains have not at all been in a straight line. This means that while the original cryptocurrency often enjoys considerable appreciation gaps, it can also fall sharply and dangerously down. If you can handle wild volatility that makes the precious metals look stable and calm, then keep reading so that you can get a full understanding of what is involved in investing in Bitcoin.
You can hold it 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. 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)
This was years in the making, but at last the IRS weighed in on digital currencies in a long awaited federal ruling. The Internal Revenue Service issued their statement on Bitcoin with these words:
The IRS is aware that ‘virtual currency’ may be used to pay for goods and services, or held for investment. Virtual currency is a digital representation of value that functions as a medium of exchange, a unit of account, and/or a store of value. In some environments, it operates like “real” currency – i.e., the coin and paper money of the United States or of any other country that is designated as legal tender, circulates, and is customarily used and accepted as a medium of exchange in the country of issuance – but it does not have legal tender status in any jurisdiction. Bitcoin is one example of a convertible virtual currency. It can be digitially traded between users and can be purchased for, or exchanged into, U.S. dollars, Euros, and other real or virtual currencies. For federal tax purposes, virtual currency is treated as property.”
The Rollover – Finding an IRA Custodian That Accepts Bitcoin Investments
If you are considering to add it 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.
#1. Regal Assets – Overall Best Company
- Hacker Proof
- Requires Password
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IRA Custodians that accept Bitcoin
- Regal Assets (our recommendation)
- Millennium Trust Company
- The Entrust Group
- PENSCO Trust Company
Regal Assets is the ONLY company in the industry that offers FULL INSURANCE for the entire market value of your cryptocurrency portfolio and is insured by Lloyd’s of London.
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 visit their website here or give them a call – 1-844-334-0018
How does it 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 crypto 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 at 1-844-334-0018.
Should You Invest a IRA?
If you think that cryptocurrencies 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 it doesn’t hold, you won’t lose a whole lot.
It is not important that the IRS tongue and cheek refused to tax the digital currency like a real currency. They were simply looking for a way to be able to classify it as real income which they can tax at a higher tax bracket for many people and investors.
If you are finally convinced in the viability of Bitcoin as a possible investment for a well-diversified and well-rounded portfolio, here is the custodian that reliably provides Bitcoin IRA investments. The well-known Fortune 500 company Regal Assets is a dependable company that you can count on to set up a IRA and help you get started.