Self-Directed IRA Cryptocurrency Companies
How to Buy Cryptocurrency with a Self Directed IRA Custodian
We’ve reviewed the top Cryptocurrency IRA Companies to help you to choose the right Bitcoin IRA. A Crypto IRA lets you hold digital assets in your retirement account. We may receive a commission from our partners but our reporting and recommendations are always independent and objective. For more, read our Compensation Policy.
A leading Digital IRA setup and management firm, BitIRA® helps their clients add cryptocurrencies to their retirement accounts. BitIRA was founded by the Birch Gold Group, Gold IRA specialists.
- Cold Storage in Grade-5 Nuclear Bunkers, Guarded 24/7
- $100M End to End Insurance
- 17 Crypto choices
- 17 IRA types
Alto Solutions, Inc. is an alternative investment platform that offers Self Directed IRAs. Their CryptoIRA lets investors buy and sell cryptocurrencies without need of an LLC.
- Trade 24/7
- 150+ Crypto choices
- Coinbase connected
- Safe storage
MyDigitalMoney offers self directed IRAs for investors looking to add cryptocurrencies and precious metals to their retirement accounts. The platform offers play money accounts, gain/loss prompts and trigger order features.
- 24/7 Trading Platform
- 28 Cryptocurrency Choices
- Military Grade Security
Founded in 2018, Rocket Dollar offers a wide variety of alternative retirement investments. The firm’s goal is to provide safe, simple, and fast retirement investments for their clients.
- Low Fees
- First Class Customer Service
- Alternative Investment Experts
iTrustCapital offers a modern IRA platform letting their clients trade cryptocurrencies in their retirement accounts.
- 24/7 Trading Platform
- 28 Cryptocurrency Choices
- Coinbase Custody
- Gold & Silver
Can I buy Cryptocurrency in a Self-directed IRA?
IRS Notice 2014-21 states that the Internal Revenue Service sees digital assets, aka cryptocurrencies including Bitcoin as property and allowed in a SDIRA.
You can benefit from the tax advantages of either a Roth or traditional self directed IRA but limited to the maximum annual contribution of $6000, $7000 if over 50 (2022). If you already have a traditional IRA or 401k, you can “roll over” the funds into the Bitcoin IRA.
Bitcoin SDIRAs require the following…
- Custodian: This entity holds your investment, tracks rollovers, transfers, contributions and distributions, conforming to IRS regulations.
- Exchange: This is the trading platform where crypto is purchased with the funds in your IRA.
- Storage: Your cryptocurrency holdings are securely stored to prevent loss and theft.
What is a Crypto IRA?
A Crypto IRA, also know as a Bitcoin IRA, is an exciting new way to invest in digital currency while enabling investors to diversify their portfolios and gain exposure to crypto markets.
These accounts have unique benefits that make them a popular choice for investors who are interested in the world of digital assets. If you’re ready to get started investing in retirement but don’t know where to start, a crypto IRA might be the perfect option for you.
To purchase Crypto for your retirement, you must first open an (SDIRA) Self Directed Individual Retirement Account. The SDIRA is an individual retirement account that allows for tax advantaged saving while giving you control over your investments.
You can set up a self-directed IRA and make contributions, withdrawals and taxation decisions just like a traditional or Roth IRAs. It differs from a standard IRA in that you have more investment options including real estate, Tax lien certificates, precious metals and cryptocurrency. Financial Planners are now, more than ever recommending Cryptocurrency investments.
Is a Bitcoin IRA safe?
Since Bitcoin, and crypto in general is a relatively new and untested financial technology, it’s important to be aware of the risks involved. As the Bitcoin market continues to grow, the price fluctuates and can be volatile. Plus, there’s always the risk that Bitcoin could lose its value or fail to grow as quickly as you’d like.
While a Bitcoin IRA account adds a layer of diversity to your investment strategy, many financial experts recommend using caution when deciding on the percentage of crypto investments in your retirement savings.
Is a Bitcoin IRA a good idea?
If you’re wondering whether it’s a good idea to invest in a Bitcoin IRA, then you’re probably not alone. An investment vehicle that holds virtual coins and allows investors to save money in a retirement account is not for everyone.
In fact, there are a number of pitfalls that can prevent you from achieving your financial goals. If you’re thinking of starting a Bitcoin IRA, security should be your top priority. An unregulated or unlicensed financial service that functions as a personal bank is one of the biggest red flags.
If you’re not sure about the legitimacy of a Bitcoin IRA, you should probably stay away from them. However, there are a few Bitcoin IRA platforms that are secure and meet the right regulatory standards.The companies listed on this page have been vetted.
Can I move my 401k to Bitcoin?
You can convert your 401(k) savings into crypto. But most 401(k) programs don’t allow the direct purchase of digital currency, so you’ll need to use a self-directed Digital IRA instead.
You control 100% of your investments; plus, IRS guidelines allow you to invest in multiple cryptocurrencies and bitcoin.
As a retirement investor, you should understand the risks associated with cryptocurrencies. They can provide an excellent avenue for a broadly diversified portfolio that is tax-advantaged provided you choose wisely.
The best Bitcoin IRA companies will assist you with choosing the right cryptocurrency and trading your digital assets in an account that maximizes its tax advantages as well.
Before settling on a Crypto IRA firm, a savvy investor should check online client reviews, the BBB other consumer rating websites. If ratings and reviews prove positive, you can get a free investment guide from the company’s website and review their literature.
If you are happy with the information provided, you can speak with a representative on the phone. If the advisor is knowledgeable, low pressure and interested in your financial future you can take the next step.
Crypto IRA Pros:
- Potential Profits: Bitcoin and other crypto prices can be volatile. The original crypto was up 59.8% in 2021 with Ethereum up nearly 400% in the same year. If you are only investing a small percentage of your life savings in crypto it may be worth the risk.
- Diversification: Similar to gold, there is little correlation between the stock market and Cryptocurrencies. So when the stocks and bonds drop, your crypto account may hold its own.
- Tax Breaks: There are no capital gains to paid until you take retirement distributions. At this time your income would probably be lower so in essence you get a tax break.
Crypto IRA Cons:
- Fees: More costs than a standard IRA including set up, custodial and trading fees.
- Volatility: Cryptocurrencies can have very large down swings and if ill-timed, could affect your savings at retirement.
- Crypto Exchange limits: Your preferred trading exchange may not be available with the Crypto IRA company you use.
Our Vetting Process for the Best Digital IRA
Choosing the right “Bitcoin IRA” company is of upmost importance when your retirement savings are at stake. We vetted multiple companies in seven major areas of concern and factored our findings into selecting our top firms.
- Company: Does the firm have the team, experience and expertise to handle your life savings?
- Fees: Self-Directed Cryptocurrency IRA costs can add up quickly in monthly, startup, trading and custodian fees.
- Platform: Self-trading 24/7 options are available and access to a quality exchange should be standard.
- Customer Reviews: Client reviews are very telling in this industry so we looked at Google, BBB, Birdeye and Shopper Approved websites.
- Investment Options: How many cryptos are available to trade? Are traditional, Roth, 401(k), 403(b), 457 IRAs and rollovers investment options?
- Security/Insurance: Hacks are a major concern in the cryptocurrency world therefore a Crypto SDIRA firm should have robust security, encryption and insurance measures in place.
- Customer Service: Full service support with account matters and trading are important. Is customer service U.S. based and available when needed?
Types Of Crypto IRAs
Bitcoin IRAs are a type of self-directed retirement account that allows for various investments in cryptocurrency. They act like traditional IRA accounts, but with different options to invest in cryptocurrency instead of other assets.