Business

Best Bitcoin IRAs of September 2022

[ad_1]

Insider’s experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page.

The topic of crypto and retirement investing has become a popular one, especially as brokerages like Fidelity have chosen to offer bitcoin as a 401(k) investment choice. However, several companies also offer crypto trading through self-directed IRAs. These companies also provide custodial services, storage options, and in some cases 24/7 trading access.

Bitcoin IRAs can be an alluring investment option for those who want to avoid capital gains taxes while building wealth. Without an IRA, you’d be subject to capital gains taxes for regular crypto transactions. But self-directed IRAs eliminate those extra costs (or at least defer them).


Fees


Speak with a representative


Fees


Speak with a representative

Pros

  • Bitcoin, ethereum, litecoin, and several other cryptocurrencies available
  • You can invest in one coin or a blend of multiple coins
  • Bitcoin IRA offers up to 6% interest in IRA
  • $100 million insurance available

Cons

  • Information about pricing isn’t readily available on the website; you’ll need to speak with a company representative to learn more

More Information

  • Features: 24/7 trading, offline storage, and $100 million insurance
  • Better Business Bureau rating: A+

Best for account security: BitIRA


Fees


$50 account setup, $195 annual maintenance; 0.05%/month offline storage


Fees


$50 account setup, $195 annual maintenance; 0.05%/month offline storage

More Information

  • Features: Several supported cryptocurrencies, offline storage, $100 million custody insurance
  • Better Business Bureau rating: A+

Best for expert assistance: CoinIRA


Fees


1.25% buy trades; 1% sell trades


Account Types


Individual accounts; IRAs


Fees


1.25% buy trades; 1% sell trades


Account Types


Individual accounts; IRAs

Pros

  • Supports bitcoin, ethereum, litecoin, and 15 other cryptocurrencies
  • Offers Cryptocurrency Self-Trading platform that lets users easily place their own trades
  • You can work with consultants if you have any questions

Cons

  • Limited wallet options; mainly uses Equity Trust to secure digital assets through offline storage


Read Our Review
Read Our Review A looong arrow, pointing right

More Information

  • Features: Crypto educational resources, consultant support, and crypto self-trading platform
  • Better Business Bureau: A+


Account Minimum


$1,000 ($500 minimum additional contribution)


Account Minimum


$1,000 ($500 minimum additional contribution)

Pros

  • 25+ cryptocurrencies
  • Precious metals available
  • You can use several different methods — including IRA transfers and employer plan rollovers — to fund your account
  • $320 million insurance through Coinbase Custody

Cons

  • You can’t make contributions with crypto you owned before setting up the account


Read Our Review
Read Our Review A looong arrow, pointing right

More Information

  • Features: Cryptocurrencies and precious metals investing, 24/7 crypto support, and secure storage and insurance

Best for beginners: BlockMint


Fees


2.5% purchase transaction fee/1.0% sell transaction fee; 0.5% monthly storage fee crypto IRAs


Fees


2.5% purchase transaction fee/1.0% sell transaction fee; 0.5% monthly storage fee crypto IRAs

More Information

  • Features: One-on-one guidance from BlockMint professional and offline storage 
  • Better Business Bureau rating: A+


Fees


$1,295 account setup; $95/quarter custodial


Fees


$1,295 account setup; $95/quarter custodial

More Information

  • Features: “Checkbook control” over IRA, no account minimums; easily accessible team of self-directed retirement account experts
  • Better Business Bureau rating: A+

Compare the best bitcoin IRAs

Bitcoin IRA (Jump to Bitcoin IRA details »)

Why it stands out: Bitcoin IRA supports 24/7 trading of multiple cryptocurrencies, including bitcoin, ethereum, litecoin, stellar lumens, zcash, bitcoin cash, ethereum classic, and digital gold. You’ll need a minimum of $3,000 to get started, and the platform lets you invest in one coin or a blend of multiple coins.

There’s a one-time service fee, which Bitcoin IRA says covers support services for retirement fund rollovers (Bitcoin IRA lets you rollover funds from traditional IRAs, Roth IRAs, SEP IRAs, SIMPLE IRAs, 403bs or 401(k)s), security storage, and setup costs for a self-directed IRA with BitGo Trust. Bitcoin IRA also offers up to 6% interest in crypto IRAs.

When it comes to crypto storage, Bitcoin IRA stores your assets with BitGo Trust. The custody includes $100 million in insurance and complete offline storage.

What to look out for: Fees and pricing aren’t straightforward. You’ll need to reach out to a company representative for more information. 

BitIRA (Jump to BitIRA details »)

Why it stands out: BitIRAis another popular IRA option for investors looking to add bitcoin and other virtual assets to their retirement accounts. Its custodian, Equity Trust Company, handles all of the administrative duties of the account, while simultaneously giving you complete control over your assets. 

BitIRA supports several cryptocurrencies. These include bitcoin, bitcoin cash, ethereum, ethereum classic, litecoin, zcash, stellar lumens, and bitcoin sv. You’ll need at least $5,000 to get started, and you’ll incur a $195 annual maintenance fee and 0.05% fee for crypto storage.

BitIRA also heavily prioritizes security. The company only lets you access your crypto assets through multi-factor authentication, and it relies on offline cold storage to protect your assets. In addition, BitIRA provides $100 million in custody insurance to shield you against theft, destruction, or loss.

What to look out for: In addition to the $5,000 minimum requirement, you’ll run into three other fees: a $50 setup fee, $195 annual maintenance fee, and 0.05% crypto storage fee.

CoinIRA (Jump to CoinIRA details »)

Why it stands out: CoinIRA offers several resources for investors interested in including cryptocurrencies in their IRAs. These include consultants who can assist you with any crypto-related questions and a free cryptocurrency IRA guide that tells you everything you need to know about tax benefits, crypto retirement savings, inflation hedging, and more.

As for its investment offerings, CoinIRA supports bitcoin, ethereum, litecoin, and 15 other cryptocurrencies. The company also has no maximum purchase limits on cryptocurrencies, and it offers individual accounts, traditional IRAs, Roth IRAs, SEP IRAs, and SIMPLE IRAs.

Another perk is that CoinIRA charges no fees for insured offline crypto storage. It currently uses Equity Trust Company as its custodian for customer assets. You will encounter fees when trading. Buy transactions result in a 1.25% fee, and sell transactions cost you 1%. See more on its fees here.

What to look out for: CoinIRA previously offered multiple wallet options, but now it mainly relies on Equity Trust Comany’s offline storage methods.

iTrustCapital (Jump to iTrustCapital details »)

*Personal Finance Insider normally includes an investment platform’s Better Business Bureau rating in this row, but iTrustCapital doesn’t have a BBB profile at this time.

Why it stands out: iTrustCapital offers more than 25 cryptocurrencies for traders interested in crypto IRA investing. Among these are assets like bitcoin, ethereum, cardano, dogecoin, polkadot, litecoin, and others (you can see a complete list here).

The platform also offers gold and silver for precious metals traders. You can fund your account using an array of methods, including IRA transfers (iTrustCapital supports traditional, Roth, SEP, and SIMPLE IRAs), employer plan rollovers (available for 401(k)s, 403(b)s, thrift savings plans, and 457 plans).

iTrustCapital also partners with Coinbase Custody to provide a $320 million commercial crime insurance policy. 

What to look out for: Keep in mind that you can’t fund your IRA with crypto assets you already own. You’ll only be able to do so with US dollars. In addition, iTrustCapital isn’t available to New York or Hawaii residents. 

BlockMint (Jump to BlockMint details »)

Why it stands out: BlockMint supports bitcoin, ethereum, litecoin, bitcoin cash, and ethereum classic. Though the IRA includes a higher account minimum, the company makes up for it with its approach to customer service. After you open an account, BlockMint pairs you with a professional who guides you through the investment process and offers ongoing support.

The company’s security measures are also worth pointing out. BlockMint says it stores your crypto assets in two separate vaults that are guarded 24/7.

You can only fund your account by transferring or rolling over funds from the following accounts: traditional IRAs, Roth IRAs, SEP IRAs, SIMPLE IRAs, 401(k)s, 403(b)s, 457(b)s, thrift savings plans, or TIAA CREF plans.

What to look out for: BlockMint says it only conducts crypto and digital currency transactions during normal business hours. If you’re looking for 24/7 access to your favorite cryptocurrencies, you’ll need to consider other options.

Broad Financial (Jump to Broad Financial details »)

Why it stands out: One thing that sets Broad Financial apart from the other IRA providers is that its bitcoin IRA is a Checkbook IRA LLC. Checkbook IRA LLCs give you complete control over your crypto, allowing you to choose any cryptocurrency, crypto exchange, or crypto wallet you want.

The IRA has no account minimums, and it’s available as both a traditional IRA or Roth IRA (this means you can contribute with pre-tax or post-tax dollars). The only two fees to keep in mind is Broad Financial‘s $1,295 account setup fee and $95 quarterly custodial fee.

What to look out for: Even though there aren’t any account minimum requirements, keep in mind that you’ll need $1,295 up front when setting up the IRA.

Other bitcoin IRAs we considered

  • Regal Assets: Regal Assets offers an expansive investment selection of assets, including cryptocurrencies and precious metals. You’ll need a minimum of 5,000 to get started.
  • Equity Trust: This company offers a range of assets, including real estate investments, precious metals, cryptocurrencies, stocks, and more. It also allows you to take advantage of both Equity Trust’s custody and crypto offerings along with expertise from other platforms like BitIRA. One of the drawbacks is that the platform doesn’t offer much fee transparency.
  • Alto IRA: Alto IRA provides access to numerous alternative investments, including fine art, startups, real estate, cryptocurrencies, and more. The company also partners with Coinbase to provide more than 100 cryptocurrencies, but you’ll only be able to choose digital assets provided by Coinbase.
  • Rocket Dollar: This company offers both self-directed IRAs and solo 401(k)s. Its platform is also easy to navigate, and it gives you a wide range of investment options. Its setup fees — $360 or $600 — may be high for some.

How we determined the winners

We researched numerous bitcoin IRAs to find the best options for cryptocurrency selection, fees, security, features, and more.

On the fee side of things, we paid closed attention to account minimums and account setup fees/advisory fees. We also considered customer service availability when narrowing down platforms.

Frequently asked questions

Why trust us?

At Personal Finance Insider, we aim to help smart people make the most intelligent decisions with their money. We also understand that the word “best” is often subjective, so we make sure to highlight both the benefits and disadvantages of bitcoin IRAs.

We spent hours comparing and contrasting the features and fine print of various bitcoin IRAs so you don’t have to. 

Bitcoin IRA companies act as custodians for investors who want to diversify their retirement accounts with cryptocurrencies like bitcoin, dogecoin, or others. You can only invest in cryptocurrencies with self-directed IRAs.

You can have a self-directed IRA that mimics the tax structure of a traditional or Roth IRA, but unlike traditional and Roth IRAs, these accounts give you greater authority over which investments go into your retirement account. They also allow you to invest in alternative assets like precious metals, real estate, and cryptocurrencies.

In addition, law requires that all SDIRAs have a certified custodian that manages the account. For instance, BitIRA acts as the account’s custodian, executes all crypto transactions, and provides secure storage for your assets.

Bitcoin IRAs are simply self-directed IRAs that investors fund with cryptocurrencies. And traditional crypto IRAs and Roth IRAs generally have the same tax rules as the standard IRAs do. With a traditional crypto IRA, the investments you make are tax-deductible, and you’ll only pay taxes once you reach the withdrawal age (591/2). Note, however, that you’ll incur a tax penalty if you try to make withdrawals before age 591/2.

Like the regular Roth IRAs, Roth crypto IRAs also let you pay taxes upfront, make premature withdrawals without tax penalties, and withdraw your earnings tax-free once you’ve reached age 591/2.

This question is primarily in your hands. Bitcoin IRAs are simply self-directed IRAs that offer access to a range of alternative assets like real estate, precious metals, or cryptocurrencies such as bitcoin or ethereum.

These accounts are also available in traditional or Roth form (and they’ve also got a $6,000 contribution limit for those under age 50 and $7,000 limit for those above that age), but it’s important to examine the unique risks of cryptocurrency investing before you take this route.

One thing to remember is that you can’t fund these accounts with existing crypto assets; that is, you’ve got to purchase new crypto shares with US dollars after you’ve set up the account. Another thing to keep in mind is that cryptocurrencies like bitcoin are usually a lot more volatile than most mutual funds and other traditional retirement funds.

For this reason, it’s best to exercise caution if you’re considering taking the crypto IRA route. 

[ad_2]

Source link