Are you considering investing in cryptocurrency in an IRA? Here’s what you should know before you get started.
Why Hold Cryptocurrency in a Self-Directed IRA?
Potential Tax Advantages
While investors have a variety of reasons for holding cryptocurrency, such as Bitcoin, in a self-directed IRA, one of the top possible reasons would be the tax advantages.
Investments within a self-directed account grow tax-deferred or tax-free, depending on the account type and as long as IRS guidelines are followed.
How Does Cryptocurrency in an IRA Work?
All IRAs must be held by a custodial entity, such as a bank or a trust company, approved by the IRS. Through a predecessor company, Equity Trust has been an IRS approved custodian since 1983.
As a leading provider of self-directed IRAs, Equity Trust has more than $34 billion in assets under custody and administration (as of 8/31/2021).
Pertaining to cryptocurrency, once a retirement account is open and funded, you can establish a digital currency (cryptocurrency) trading account within our Digital Asset Platform.
As you direct, the funds in your IRA are transferred to the Digital Asset Platform. When cryptocurrency is sold, funds are transferred from the platform back to the IRA.
