As more regulation is finding its way into the world of crypto, Crypto IRAs are becoming a viable option and Bitcoin IRA claims to be the first and most reliable.
In this Bitcoin IRA review, we’re going to take a deeper look at the Bitcoin IRA platform, fees, tax implications, competitors and more.
Note: This article is not to be taken as financial, legal, or tax advice. Consult a tax professional before making moves with your IRA.
What is an IRA?
Individual Retirement Accounts (or IRAs) is the most common type of retirement account. It allows you to invest in stocks, bonds, and other financial instruments and receive tax-deferred income on the investments.
Bitcoin IRA Review
Bitcoin IRA claims to be the first and most trusted crypto IRA platform. There are over 100,000 self-directed IRA accounts with Bitcoin IRA. The company offers over 60 currencies and has platform insurance of $700 Million.
Ease of Setup
- Easy to set up and use
- Tax-deferred crypto investing
- Gold investment at a low cost
- Interest-bearing account
- Full-service IRA rollover
- U.S. regulated
- $700 Million Custody Insurance
- High setup and maintenance fees
- No option to make initial purchase with crypto
- Small selection of virtual currencies
There are two types of IRAs: Traditional and Roth
The traditional IRA is a retirement savings account that is funded with pretax dollars. This means that the money you contribute to your traditional IRA is deducted from your taxable income the year you deposited it.
The Roth IRA is also a retirement savings account, but it is funded with after-tax dollars. This means that you do not get a tax deduction for the money you contribute to a Roth IRA. However, the money in a Roth IRA grows tax-free, and you can withdraw the money from a Roth IRA tax-free once you reach the age of 59.5.
There’s also the 401(k) which is basically a retirement savings plan where a percentage of the employee’s salary goes to an investment account. The employer then matches a part or all of this contribution. There are a number of investment options available for the employees to choose from for their contribution.
Much like the IRA, the 401(k) has two basic types, traditional and Roth, taxed similar to the IRAs.
Finally, there’s Crypto IRAs, which we’ll be discussing in the next section.
We’ll also be discussing Saver IRA, which is a type of crypto IRA provided by Bitcoin IRA.
What is a Crypto IRA?
A crypto IRA is a retirement account where you can store and invest cryptocurrency. The rules and tax advantages will be the same as what you’d find investing in any other common asset class. There are certain variations, such as the usage of a cryptocurrency exchange as opposed to the stock market.
Also, you’ll want to pay attention to your funds custodian and how digital assets are stored. A Crypto IRA solutions, that we know of, are custodial solutions due to the withdrawal limitations of 59.5 years old.
Related Reading: The Best Crypto IRAs
What is Bitcoin IRA?
Bitcoin IRA is one of the most secure and largest cryptocurrency IRA platforms with more than 100,000 account holders. It is a self-directed, full-service IRA provider with an all-in-one platform for trading crypto from the IRA.
The platform provides users with the following features:
- 24/7 crypto trading
- Transfer or rollover of an existing IRA into a Bitcoin IRA
What IRAs can be transferred over to Bitcoin IRA?
Roth, SEP, and Traditional IRAs are among the accounts that qualify. If a 401(k) is current, it also may be rolled over into Bitcoin IRA.
Pensions and annuities are also options.
Usually, when you roll an IRA from one type to another type of IRA there are no tax or withdraw penalties. However, it is best to consult a tax professional before making major moves to avoid any major fees and taxes.
Bitcoin IRA: Minimum Investment
While you need to invest a minimum of $3,000 for the standard account, there is no upper limit on the amount you can invest. If you instead decide to go for SaverIRA, you can start with just $100 per month.
What is a Bitcoin Saver IRA?
Bitcoin Saver IRA is one of the IRA products provided by Bitcoin IRA. Instead of investing $3,000 (which is the minimum you need to invest for a standard account), you can start with as low as $100. You then need to invest a minimum of $100 per month on a recurring basis to continue to grow your account and save on taxes.
Related Reading: Long Term Cryptocurrency Predictions
You can call them using the number present on the website or send them an email at firstname.lastname@example.org. But if Bitcoin IRA had 24/7 chat support their customer support would be rated slightly better.
How many cryptocurrencies does Bitcoin IRA support?
Bitcoin IRA supports more than 60 cryptocurrencies right now. Find the complete list here. The IRA is self directed, meaning you can buy and trade crypto on your own. However, you can’t use any crypto trading bots like on some crypto exchanges, or even connect 3rd party trading bots like 3commas.
What other assets does Bitcoin IRA support?
In addition to allowing users to invest in cryptocurrencies, Bitcoin IRA also allows users to invest in gold. The fee and process for buying gold are the same as that for investing in crypto on the platform. The only difference here is the fact that you’re getting the ownership rights for physical gold bars.
These gold bars are kept in bullion vault facilities by Brink’s (yes, the security company whose trucks you see driving around). The New York State Department of Financial Services regulates these assets.
Many of the brokerage and storage fees usually involved with purchasing gold are eliminated through the Bitcoin IRA platform—so you pay lower fees.
Bitcoin IRA Fees?
Bitcoin IRA charges a one-time setup fee of 5.99% of the initial deposit. Then there’s a trading fee of 2% of the transaction. And finally, a monthly account fee of 0.08% of the value of your assets being managed by Bitcoin IRA (min $20).
These fees are much higher than their competitors fees. For instance, Alto IRA only charges a 1% fee per transaction – and that’s it. No set up fees, monthly fees.
However, Bitcoin IRA offers an interest earning aspect which is attractive.
Bitcoin IRA Interest Rates
Consumers can earn up to 6% interest on their crypto deposits with Bitcoin IRA. Rates vary, but as of the time of this writing users can earn up to 2.7% on Ethereum and 2% on Bitcoin deposits.
This is a nice feature that offsets some of Bitcoin IRA’s higher fees compared to competitors.
How much can I save on Taxes?
While there isn’t a fixed number, you can save a substantial amount in capital gains tax via a Bitcoin Roth IRA. If you go the traditional route, you can lower your current years taxes through tax deductible contributions to your IRA.
It all depends on how much you invest and how much tax you owe. Always consult a tax professional.
Is Bitcoin IRA safe?
Bitcoin IRA takes security quite seriously.
With SOC 1 + SOC2, Type I & II security certifications, a multi-signature digital wallet, and storing all digital assets in offline cold storage, Bitcoin IRA is a very secure platform.
Additionally, there’s a $700 Million Custody Insurance from BitGo Trust which is the largest processor of on-chain transactions in the world.
Is Bitcoin IRA legit?
Given the fact that the assets held on the platform are regulated by the New York State Department of Financial Services, it is definitely legit.
In the end, it all comes down to what works for you. If you want to trade crypto in your IRA and are comfortable with the fee, Bitcoin IRA is definitely worth checking out. But if you’re on a budget and can set up your account yourself, you might want to look into other options like Alto IRA or iTrustCapital
We tried to make this Bitocin IRA Review as objectively as possible. We hope it helped and happy investing!