Learn How You Can Easily Buy Bitcoin & Cryptocurrency In An IRA YOU Control
LEARN THE SECRETS
Bitcoin IRA Secrets
“Learn The Secrets Savvy Investors Are Already Secretly Tapping Into To Safely & Securely Buy Bitcoin & Cryptocurrencies In An IRA!”
What is Cryptocurrency?
Daily, thousands of digital or virtual currencies are traded and exchanged, from Bitcoin to Bitcoin Cash to Dogecoin to CannabisCoin, with the most well-known cryptocurrency being Bitcoin.
Bitcoin is a form of virtual currency that uses blockchain technology. You can use Bitcoin to purchase products, goods, services, exchange them for U.S. dollars and even foreign currencies. You can even buy it as an asset inside your IRA.
With a market cap of nearly a trillion dollars, cryptocurrency is taking the global monetary system by storm and is turning it on its head. So much so that many crypto investors believe cryptocurrency will overtake most, if not all, financial endeavors in the future.
Bitcoin's Meteoric Rise As A Digital Asset
In the last decade, Bitcoin’s value has risen from just $0.30 per coin in 2011 to a record high of $64,899.00 in 2021.
Bitcoin’s meteoric rise in value is astonishing, and yet despite its rise, it may still be in its infancy. Especially if you believe, as many investors do, that Bitcoin will trade in the millions of dollars per coin in the long run.
The Growth of Bitcoin Since 2013
Bitcoin Goes Mainstream
Though Bitcoin is a new market for most investors, as a currency and a means of exchange, Bitcoin is steadily gaining popularity. Every day, Bitcoin is moving more and more into the mainstream consciousness of the culture.
Although up until now, there has been a huge concern over Bitcoin’s short-term price volatility, the value of Bitcoin over time has remained strong, especially in times of financial uncertainty.
Bitcoin-related endeavors have drawn significant investments and sponsorships from well-known merchant payment gateways.
Bitcoin offers advantages like a quick, cheap, and efficient medium for transactions, a solid diversification instrument, and a safer, more secure way to deal with transactions.
According to Kevin Petrasic, an employee at White Case LLP in Washington, DC, “In the Bitcoin network, the average processing fee for a Bitcoin transaction is $0.04, compared to your typical credit card transactions, which can be greater than $0.35.”
How Is Bitcoin & Other Virtual Currencies Taxed?
For the answer, check out IRS Notice 2014-21, published on March 24, 2014. In the notice, the IRS states, “Virtual currency is treated as property for U.S. federal tax purposes. General tax principles that apply to property transactions apply to transactions using virtual currency.”
Because bitcoins and other cryptocurrencies are viewed as property (and NOT as currency) for tax purposes, the IRS imposes extensive record-keeping, rules, and significant taxes on their use.
The IRS treats gains derived from virtual currency as a capital asset. Profits earned by holding virtual currency short-term (less than a year) are subject to ordinary income tax rates. If the currency is held for more than 12 months, the currency is subject to long-term capital gain tax rates. Therefore, if you purchased and held virtual currency for more than 12 months, you will be taxed between 15-20% on the gains made on your currency based on your income bracket.
Bitcoin And The Tax Favorable
Benefits of an IRA
More and more people will exchange cryptocurrency for goods and services as they do now using other popular digital wallets like Paypal and Venmo.
More and more people will trade due to convenience and invest in cryptocurrencies to get out of the inflated US dollar.
Why Bitcoin Investing And The IRA Go Hand In Hand
From A Tax Perspective?
The IRA offers great investment diversification. You can invest in most assets except for the disqualified assets listed in the Internal Revenue Code (IRC) Section 408.
Bitcoin is not listed as a prohibited or forbidden asset for your IRA portfolio.
The IRA is a tax-favorable haven for investors who want to accelerate their wealth. Bitcoin gains or profits can be held in a traditional IRA tax-deferred or in a Roth IRA, where not only are your gains tax-deferred, but also you can withdraw your funds tax-free!
Because of the rules associated with an IRA, the IRA is a great investment vehicle for long-term investors. For example, the IRA rules prohibit you from accessing your IRA earnings without you incurring a 10% tax penalty if you withdraw your funds before age 59 1/2.
There are trillions of dollars sitting in IRA accounts right now that aren’t yet set up to invest in Bitcoin, which means as an early adopter, you can get ahead of the power curve.
A Note About IRA Prohibited Transactions - The Good News Is Cryptocurrency Is Not Listed As One
"Cover Your Assets!"
How Are The Gains Earned Handled Inside Your Bitcoin IRA?
The gains earned on your Bitcoin in your IRA are shielded from taxes until you withdraw or take distributions from your account. By investing in cryptocurrencies within your IRA, you can defer the taxes owed until a future date when you take distributions or make withdrawals from your account.
For investors who plan on investing in Bitcoin long-term, the Roth IRA offers the best of both worlds. The Roth IRA allows you to defer taxes on the growth of your assets and enables you to receive distributions from your account tax-free!
With a Bitcoin Roth IRA, Bitcoin investors find themselves in a dream scenario: a tax-deferred, tax-free vehicle for accumulating wealth faster.
Investing in a Bitcoin Roth IRA now can truly be a home run for cryptocurrency investors.
When you sell your assets and then take distributions from a Roth IRA account, your tax burden on the gains earned within the account is entirely eliminated. It may sound too good to be true, and it may sound cliche, but those are the rules related to a Roth IRA, and as they say, “the rules are the rules.” So, why not leverage them to the hilt?
A Self-Fulfilling Prophecy
We may be only at the beginning of a new revolution in how individuals choose to invest their retirement dollars! The way Americans, especially Millennials, are investing their retirement funds is shifting, and Bitcoin is at the forefront driving that change.
According to Fintech, “…the growing millennial preference for cryptocurrency trading is less surprising than it would seem. The members of this generation distrust the stock market and prefer app-based digital investment alternatives like cryptocurrencies as it fits those preferences. Moving forward, it’s expected that an even greater proportion of millennials would favour crypto investments.”
As more and more people become increasingly aware of Bitcoin investing through their IRA along with the associated tax benefits, and as more people become more disenchanted with traditional investments, we can likely expect Bitcoin investing to gain more momentum.
Ultimately, as more and more people invest in Bitcoin, it will likely serve as a catalyst to stabilize the currency in the long run, alleviating many of the concerns investors currently have about Bitcoin’s short-term volatility.
How Do You Buy Bitcoin In Your IRA?
How To Safely & Securely Hold Bitcoin In An IRA You Control!
Step One: Set Up Your Bitcoin IRA LLC
A self directed IRA allows you to decide the investments to include in your retirement plan.
A self directed IRA gives you more control over the assets you can purchase and the amount of risk you put into your investments.
With our self directed IRA and our select group of IRA custodians, you are free to invest in the following assets, including but not limited to private equity, franchises, partnerships, real estate, precious metals, and tax liens.
IRA investors will frequently flip investment properties or invest in other types of hedge funds, foreign stocks, or royalties to grow the value of their IRA portfolio. And yes, even bitcoin! We also often recommend unique opportunities that cater to your specific financial expertise. If you are interested in these opportunities, you must be an accredited investor.
However, with us, we have the proper financial institutions and custodians lined up that allow you to invest your IRA however you desire, and we make it as easy as possible. We create an entity known as the new standard IRA.
Call us now to set up a New Standard IRA so that you can buy Bitcoin in your IRA the right way. Our process is proven, efficient, and problem-free.
Step Two: Choose Your IRA Custodian Wisely And Select One That Holds Alternative Assets, Such as LLCs
If you choose to set up a New Standard IRA with our firm, we will help you select the ideal custodian for you as part of your service.
To hold all of your IRA assets for you.
Make transactions on your IRA's behalf.
Keep records necessary to keep up your accounts.
Report to the IRS.
However, many IRA custodians, even though you are self directed and the IRS does not explicitly prohibit the investment thereof, will not allow you to buy cryptocurrency inside your IRA.
Many custodians typically restrict your investment options and offer you a small selection of assets like mutual funds, stocks, and bonds. However, if you want to make different investments, there are other options available. We already mentioned it, but it bears repeating. You can invest in any assets that the IRS does not explicitly forbid.
The type of investments you plan on holding in your IRA is one of the key factors to consider when choosing an IRA custodian. For example, if you intend to hold real estate properties in your IRA, select a company specializing in holding real estate.
If you want to buy stocks in your IRA, find an IRA custodian comfortable holding stocks. Custodians vary within the industry; for example, some brokerage firms will manage your account, where other brokers (discount brokers) just execute your trade.
Please reach out to us if you need help identifying or choosing a suitable IRA custodian for your investment strategy. We’d be happy to assist you.
Step Three: Fund Your New Standard IRA Account And Your LLC
If you have an IRA already, your current custodian securely transfers your IRA funds to a registered, qualified self directed IRA custodian who understands and recognizes the IRA LLC entity. Your funds are held safely and securely in the new IRA account for a short period (usually less than a week).
Next, you fund your IRA LLC checking account. Once you fund your IRA LLC checking account, only you manage your account, and you alone have access to your funds.
Note: When you work with New Standard IRA, your funds are transferred directly and safely to a new Trust Company or Bank. We NEVER touch your money! For an IRA custodian to be qualified, the financial institution must meet stringent State and Federal requirements. E.g., For financial institutions to be deemed qualified, they are required to maintain adequate cash reserves. The Internal Revenue Code (IRC) Section 408 outlines the requirements.
Step Four: Set Up a Secure Crypto Wallet To Buy, Sell, and Trade Cryptocurrency In Your IRA
Setting up a crypto wallet for your IRA to invest in cryptocurrency is a straightforward process.
There are numerous “blockchain funds” you can speculate and invest in, and perhaps that is a discussion for another day. However, when our firm sets you up to invest in bitcoin, we assist you in establishing an account that will allow your IRA to be invested directly with a crypto wallet owned by your IRA.
We recommend using the Kraken trading platform to set up your crypto wallet to buy Bitcoin. We recommend Kraken because we have used them for years, and we have nothing but glowing things to say about the service and support.
After visiting the Kraken website, visit the “Learn Tab.” Kraken will walk you through setting up your crypto wallet.
Set Up A Bitcoin Wallet For Your IRA - Here Are The Steps To Opening A Bitcoin/Crypto Wallet:
Create a Kraken account with a unique password.
Set up two-factor authentications for an added layer of security for your crypto wallet.
Associate your IRA LLC bank account set up in Step 1 with your Kraken account.
And, that's it! Your crypto wallet is all set and ready to trade Bitcoin and other cryptocurrencies!
You can now buy, sell, and trade cryptocurrencies like Bitcoin, Ethereum, Ripple… etc., on the Kraken self-trading platform 24/7.
Cryptocurrency is a virtual asset, and not unlike any other asset you purchase, its market value depends on what someone is willing to sell it for and how much someone else will buy it for on one of the trading exchanges.
Again to summarize…
If you want to buy Bitcoin in your IRA without custodial interference and high fees, it is as easy as 1, 2, 3, 4!
Set Up Your Bitcoin IRA LLC.
Choose an IRA custodian who allows you to invest in an LLC.
Properly Capitalize Your New IRA Account & Your LLC.
Set Up a Secure Crypto Wallet To Buy, Sell, and Trade Cryptocurrency in your LLC.
Bitcoin IRA Rules To Follow
To recap, make sure funds from your IRA do not benefit you personally or vice versa, do not commingle your funds, maintain separate records.
Does having the option of investing in Bitcoin in your IRA sound intriguing to you? If so, contact us for more information or with specific questions regarding a Bitcoin IRA LLC setup.
Suppose you believe that Bitcoin and other cryptocurrencies are set to increase in value over the long term, and you want to invest in Bitcoin with your IRA. Why wait to convert your traditional IRA into Bitcoin IRA, so you are positioned to invest when you are ready?
With a Bitcoin IRA LLC, investing your IRA in Bitcoin is fast and straightforward. When we set up your Bitcoin IRA LLC, we help you set up a bank account with a debit card. That way, you can buy bitcoin and other cryptocurrencies traded on the Kraken platform.
"Cover Your Assets!"
Are You Positioned To Win The Future?
No one can predict an investment’s future with complete certainty and whether an asset will increase or decrease in price.
As of this writing, the market capitalization for cryptocurrency already exceeds over one trillion dollars in value. With over 500 trillion dollars in assets globally, 10 trillion sitting in retirement accounts, and less than 5% of those accounts self directed and with an even smaller number of IRA accounts, still, that can invest in Bitcoin. Investment dollars currently stored in other assets will more than likely increasingly move into crypto-assets, especially as IRA investors realize they too can direct a portion of their retirement portfolio into Bitcoin and cryptocurrencies on a tax-deferred and tax-free basis.
Cryptocurrencies are likely to remain and grow even more in popularity and increasingly become an integral part of our lives.
Many investors are just now awakening to what cryptocurrency is, a premier financial digital network and an emerging asset class that can store the economic energy for billions of people around the globe.
Suppose you’d like to position yourself now ahead of this growth market and purchase Bitcoin and cryptocurrencies “In An IRA, You Control.” If that describes you, we can help you set up a Bitcoin IRA so you can benefit from a first-mover advantage.
After establishing a Bitcoin IRA, you can easily invest a portion of your IRA funds in cryptocurrency by:
- Downloading a crypto-purchasing app on your smartphone or tablet.
- Funding your crypto account from your LLC-funded IRA that you directly manage, and…
- Clicking the “BUY” button to secure your Bitcoin or crypto assets.
That is the best part of owning a New Standard Bitcoin IRA… There are NO middlemen between you, your IRA, and your crypto assets.
Whether you invest in Bitcoin, other cryptocurrencies, or any other asset that the IRS does not disallow is entirely up to you. You can invest how you want, when you want, “In An IRA You Control.” Our primary objective is to position you to create the life and future you want for yourself and your family.
So, what is the advantage of waiting another day? Hint: There is no reason or benefit waiting to get your IRA set up to purchase Bitcoin now. The future waits for no one. So, reach out to us today. We can structure your IRA now so you can invest in Bitcoin when you are ready to do so. We look forward to serving you.
“The future is not someplace we are going, but one we are creating. The paths are not to be found but made. And the activity of making them changes both the maker and the destination.”
― John Schaar
IRA custodians often tell clients certain asset classes are off-limits in an IRA when in reality, the exact opposite is true.
Therein lies the problem with the custodian, which can lead to confusion.
Your custodian is not the IRS. They are a private company. As a private company, custodians are free to add restrictions that exceed what is listed in the IRS guidelines. They can restrict what you are allowed to purchase in your IRA, and they are given the license to layout the process for how you are to buy their approved asset sets.
Most often, if the guidance offered by your custodian conflicts and is more restrictive than the IRS guidelines, it does not mean you can’t invest in a particular asset. It just means that your particular custodian won’t allow you to invest in that asset and add it as part of your IRA portfolio.
The good news is the IRS rules that regulate IRAs supersede the restrive rules, corporate bureaucracy, and whims of the IRA custodian.
You should know the IRS does not tell you what you CAN invest in with your IRA. They only tell you what you CANNOT invest in with your account.
The list of disallowed investments is short. There isn’t any restriction on purchasing Bitcoin or other cryptocurrencies in your IRA explicitly written into the IRS code.
Should your IRA custodian not allow you to invest in Bitcoin, we recommend shopping around for an IRA custodian who will allow you to participate in a broader range of investment options more aligned with your investment goals.
There are currently a handful of IRA custodians and third-party administrators who have taken a step to build relationships with cryptocurrency fund managers and crypto wallet service providers.
But, investors beware!!
Using a “third party” to hold your Bitcoin carries with it a significant amount of added risks, restrictions, and additional fees, which can be cumbersome and costly. Doing your due diligence is a MUST!
If you decide to go this route, make sure the third party you select is insured. Make sure to read the fine print and all the disclaimers.
When using a “third party” or intermediary to buy your coins, expect to pay a premium for the add-on service. Due to the nature of bitcoins and the inherent risks involved, IRA custodians and Third-Party Administers (TPAs) will most likely impose an additional layer of restrictions on you, and let’s not forget to mention more fees!
The custodian or TPA will insist on using their process to buy, sell, and store your cryptocurrency. In exchange for your funds, the third party will purchase cryptocurrency on behalf of your IRA. However, your investment will not be stored in your crypto wallet, per se. A faceless third party will instead store the digital currency in their digital wallet.
Whenever you receive a privilege and aren’t in control of the financial transaction, just be aware, there is a fee schedule attached to the privilege. There is always a string attached to every privilege you receive from the financial institution. Their justification? You get the privilege of buying bitcoin in your IRA.
We believe buying your irA Bitcoin this way needlessly burdens you and your IRA, defeating the purpose of cryptocurrencies, which is to function as a peer-to-peer digital currency for a free global market.
Not all IRA accounts are created equal. Each IRA account varies depending on the company you choose. Their rules will dictate how you are to buy and hold the cryptocurrency in your IRA.
Many of the restrictions placed on your IRA are imposed directly by your IRA custodian … and not by the IRS. For example, some custodians will allow you to buy Bitcoin ETFs or futures. While other custodians will allow you to invest in Bitcoin in your IRA, they won’t allow your IRA to buy or sell, own or control the crypto wallet directly.
Instead, your custodian will act as an intermediary for your Bitcoin transactions, or they will pair your IRA up with a 3rd party that will serve as a middle man for your transactions. They will hold your crypto wallet and the keys to your account on behalf of your IRA.
However, unless you control your cryptocurrency and the keys to your account, you are restricted from buying and selling whenever you want. Similarly, you can’t move to another trading platform that may offer a high rate of return on Bitcoin deposits.
Did you know you can earn monthly compounded interest on your crypto deposits?
Unfortunately, many uninformed Bitcoin IRA investors aren’t aware of this opportunity. Many crypto banks offer “compounding interest” on cryptocurrency (even on stable coin) holdings.
The bottom line is either your IRA is receiving the interest on the deposits derived from your IRA crypto wallet, or you’re charitably passing the interest earned from your funds to your custodian or 3rd party managing your Bitcoin account.
Then, there are the fees you have to take into account.
When it comes to custodial fee structures, if we haven’t said it enough already, custodians are innovative in how they collect their fees, and who can you blame them? After all, they are in business to make a profit. They do that by corralling your retirement funds, maintaining control over the investment process to position themselves to make as much money as possible off your investment activities.
What scenario sounds more appealing to you?
Keeping more of your money working for you, paying fewer fees, having direct control of your Bitcoin IRA, and keeping the compound interest for yourself?
Or, would you rather surrender these benefits to the custodian or a 3rd party in the form of more fees and more restrictions?
Once you understand how the game is played, we believe the answer will become evident to you. By setting up a New Standard IRA, you can avoid these common pitfalls, unnecessary fees, and needless investing restrictions. Get your Bitcoin IRA set up the right way! Reach out to us now!
Can’t I just work with other firms that offer a Bitcoin IRA and receive the same benefits? Frankly, I don’t see much of a difference between what you are offering and what they are offering.
Other IRA companies, while appearing to offer something similar to us, do so in name only. Some of the differences between them and us are as follows:
In contrast to third-party intermediaries….New Standard IRA does not hold your Bitcoin IRA hostage. Our mission is to liberate you and your IRA from the shackles placed on your account by their 3rd parties.
- We assist you in setting up your Bitcoin IRA, so you have direct control over your crypto wallet and investments.
- We eliminate ALL the intermediaries between you and your investments.
- We give you ultimate control and freedom over your IRA to invest in Bitcoin without custodial interference or corporate red tape.
Wouldn’t you feel more comfortable holding, managing, and directing your IRA funds to purchase Bitcoin yourself versus outsourcing the process to a distant 3rd party where you’ll pay more in fees, surrender your control, and have more restrictions placed on you?
Here is one last thought to ponder before you outsource your Bitcoin IRA account to a faceless 3rd party.
You may recall the recent Robinhood app controversy that stoked outrage in the investor community.
Robinhood is a financial trading app whose “mission is to democratize finance for all.”
However, to benefit their Wall Street allies shorting GameStop stock, Robinhood unilaterally decided to violate their terms of service and alter their app to save the hedge funds shorting the stock.
In an unprecedented move, the Robinhood app turned off the buy button inside the app to restrict anyone from buying any more GameStop stock. Investors on the app could only sell their stock.
The inability of Robinhood investors to buy additional GameStop stock caused the stock price to plummet, thus bailing out the hedge fund managers who were able to recoup their losses at the expense of Robinhood’s customers. Thus far, Robinhood has been allowed to commit this injustice openly against its customers without any repercussions.
Hopefully, this injustice has taught us a lesson: if it can happen to them, it can happen to you if you don’t own or control either the crypto wallet or the currency it contains. We recommend that you buy cryptocurrencies in your IRA directly so that you don’t take any chances.
Do you want to take true control of your IRA and gain your independence from unaccountable 3rd parties?
We believe the answer should become apparent after weighing the benefits of a truly self directed Bitcoin IRA versus the risks we’ve outlined. We look forward to speaking with you about setting up a New Standard IRA.
Would you like to liberate your IRA, reduce added custodial imposed restrictions and invest in Bitcoin with your IRA? If so, give us a call now to set up a New Standard IRA today.