As crypto continues to evolve, many investors are interested in adding digital assets to their retirement portfolios. That leads to an important question: “Can I invest my 401(k) in Bitcoin?”
The answer is yes, you can roll over your 401(k) to Bitcoin – specifically, to an account at Bitcoin IRA – where you can invest in Bitcoin and many other cryptocurrencies.
Doing so lets you enjoy the growth potential of cryptocurrency inside a tax-advantaged retirement account. However, you’ll want to choose your account (and your crypto choices) carefully.
Can I Invest My 401(k) in Bitcoin?
Yes, you can! There are multiple ways to add Bitcoin to your retirement portfolio. One common way is to rollover your 401(k) into a cryptocurrency IRA with Bitcoin IRA.
Bitcoin IRA lets you open a crypto IRA, a tax-advantaged retirement account that allows you to add alternative assets to your retirement portfolio. Aside from the usual stocks and bonds, these IRAs offer exposure to crypto assets.
Reasons to Invest Your 401(k) at Bitcoin IRA
You’ll find several good reasons to move your 401(k) into cryptocurrency. From unprecedented ease and flexibility to military-grade security1, here’s what to know.
Growth Potential
Cryptocurrencies are a disruptive innovation – that is, they could dramatically change the financial industry.
While crypto has already seen fantastic growth during its existence, there’s still plenty of time for future growth. Adding crypto to your retirement portfolio could help you secure your wealth on the back of the next Bitcoin boom.
Tax Advantages
You probably know that a Traditional 401(k) lets you defer your tax bill until retirement age. But Roth IRAs let you pay taxes now, then enjoy tax-free distributions at retirement age.
During that time, you can trade crypto in your account without paying taxes now – or potentially ever. Assuming you make qualified withdrawals in the right kind of account, that’s a hefty lifetime tax payment dramatically reduced. Not to mention that you won’t owe capital gains taxes on crypto retirement accounts.
Diversification
Rolling over part or all of your 401(k) to Bitcoin IRA is a great way to diversify your existing investments. Because crypto values aren’t affected by regular financial factors (such as company earnings), they can offer growth potential when other assets sink.
Better yet, Bitcoin IRA offers over 60 cryptocurrencies, so you have plenty of choices for diversification among individual currencies.
Education Resources
Bitcoin IRA offers tons of online resources to help you on your investment journey. From the basics of cryptocurrency to why Bitcoin can boost your retirement potential, there are plenty of articles to keep you in the know.
Insurance
Bitcoin IRA offers up to $250 million in custody insurance for select cryptocurrency holdings through a partnership with BitGo.
Specifically, insurance is offered via BitGo’s insurance provider, Lloyd’s of London, the world’s premier insurance and reinsurance market.
That’s added protection for your holdings against theft or blockchain breaches that could disrupt your investment progress.
Security
Bitcoin IRA takes crypto security1 seriously. Most digital assets with Bitcoin IRA are stored with BitGo, the world’s largest Bitcoin transaction processor. BitGo relies on military-grade security1 measures and cold wallet1 (offline) storage to protect your assets. No other crypto IRA provider matches their level of protection.
Ease of Use
Investing with Bitcoin IRA is simple and fun. After you complete a quick signup, you can fund your account and then easily self-trade or swap assets 24/7 online. You can also access your account via the app. Plus, you’ll receive all the financial statements you need to satisfy Uncle Sam during tax time.
How to Roll Over Your 401(k) into Bitcoin IRA
Bitcoin IRA offers several ways to get investors started with a self-directed crypto IRA. Clients can choose to roll over from SEP, SIMPLE, IRA, 401(k) and other qualified accounts. Plus, you can start a brand-new IRA with no rollover required.
Here’s how to get started, whether you prefer to roll over your 401(k) to Bitcoin IRA or fund your account with new contributions.
Step 1: Create Your Account
The first step is to create your Bitcoin IRA account. The application is quick and easy – generally, it takes just three minutes to fill out. Upon opening your account, you can access your customized dashboard to start on the next steps.
Step 2: Fund Your Account
The next step is to fund your account to start trading assets. You have two basic choices:
- Funding your account via direct deposit
- Rolling over your 401(k) or another retirement account to Bitcoin IRA
Bitcoin IRA makes this process easy. Designate how much you want to invest and where the money is coming from, then fill out your profile information. Generally, accounts are ready to trade just 3 to 5 business days after a transfer is requested from your old retirement account.
Step 3: Start Trading
After your account is funded, you can start trading digital assets using Bitcoin IRA’s proprietary platform. With an internet-connected device, you can buy, sell or swap anytime, anywhere right from your Bitcoin IRA dashboard.
Step 4: Prepare for Tax Payments
Depending on how you fund your account, you may need to pay taxes now or later.
For instance, rolling funds into a traditional crypto IRA won’t incur taxes now, but you’ll have to pay taxes on distributions taken at retirement age. The same goes for funds you contribute after the rollover.
On the other hand, a Roth crypto IRA conversion may incur taxes during conversion, but all eligible distributions taken at retirement age will be tax-free.
Rolling Over Your 401(k) to Bitcoin IRA Shouldn’t be a Hassle
Bitcoin IRA believes that adding cryptocurrency to your retirement plan shouldn’t be a hassle. Fortunately, the proprietary platform makes the transition fast, simple and painless.
Frequently Asked Questions
Q: Can you roll over a 401(k) to a crypto IRA?
A: Yes, you can, using several methods – a 401(k) rollover is just one way to start with Bitcoin IRA.
Q: Do I have to cash out my 401(k) to buy a crypto IRA?
A: You can avoid cashing out your 401(k) by initiating a rollover to a Bitcoin IRA account. Adding crypto to your portfolio provides diversification and growth potential to your portfolio. Because of the high volatility of cryptocurrency, it may be not be prudent to invest all of your 401(k) in assets in this sector. Rather, you might consider rolling over a portion of your retirement account into crypto.
Q: Is a crypto IRA a good idea?
A: Investing in crypto carries high risks – and the potential for high rewards. While a crypto IRA can be a good idea for long-term, growth-oriented investors, it’s also important to know your financial limits and level of risk tolerance.
You might be also interested in: How to Choose the Best Bitcoin IRA Platform for Your Investment Needs
1Security, storage, wallet providers, and insurance may vary based on asset chosen and custody solution available.
Alternative IRA Services, LLC dba Bitcoin IRA is a platform that connects consumers to qualified custodians, digital wallets and cryptocurrency exchanges. The company is not a custodian, is not a digital wallet and is not an exchange. Self-directed purchases processed through Bitcoin IRA have not been endorsed by the IRS or any government or regulatory agency. Bitcoin IRA is not an adviser. Information contained on this website is for educational purposes only. We encourage you to consult an adviser or professional to determine whether Bitcoin IRA makes sense for you. Cryptocurrencies are very speculative and involve a high degree of risk. By using the website, you understand the information being presented is provided for informational purposes only and agree to comply with our Terms of Use and Privacy Policy.
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