Skip to content

Converting Existing Retirement Accounts to Crypto | Bitcoin IRA

Converting Existing Retirement Accounts to Crypto with Bitcoin IRA

Once investors decide to diversify their retirement portfolios by investing in cryptocurrency, the next step is to determine the best way to fund this new retirement endeavor.

A self-directed IRA (SDIRA) is a viable option for investors to consider and they can get started by either opening a new account or converting an existing retirement account.

What is a Self-Directed IRA?

A self-directed IRA varies from a traditional IRA in that investors have more flexibility in the types of investments they choose to make. With an SDIRA, you have the choice to fund it with non-traditional assets, like crypto, through a custodian or broker. Since cryptocurrency investing is not yet considered a “traditional” investment method, investors may choose to open a self-directed IRA to invest in cryptocurrencies. Meanwhile, it’s important to note that investment advice is no something provided by the self-directed custodian.

Non-traditional investment vehicles—including crypto, real estate, private equity and gold—offer investors ways to diversify their portfolios away from traditional assets, like stocks and bonds. While a bit more exciting, these investment options may be highly volatile and also come with their own set of risks and rules.

The risks include how investors understand self-directed IRAs, in addition to the account holder’s expertise in what and how they choose to invest their funds. The rules are too numerous to list here, but many can nullify the account’s tax-advantaged status. For example, if the IRS finds out you painted a wall in an apartment building owned by your IRA rather than hiring someone, you may have likely engaged in a prohibited transaction.

Investors may also want to avoid the risks of early withdrawals that come with cryptocurrency investing; despite how tempting it may seem to cash out early after seeing profits.

How to Convert Your Retirement Account to Invest in Cryptocurrency

For investors ready to convert existing IRAs, the first step is to find a qualified custodian, like Bitcoin IRA that offers the investing products they seek for investing in cryptocurrency. Next, identify the type of retirement account you have or the one you would like to open.

The primary differentiator between account types is how they are taxed. Investors have the option to choose between a Roth or traditional IRA. The funds deposited into a Roth IRA are taxed before they enter the account, while the funds in a traditional IRA are taxed upon withdrawal.

Investors can choose to utilize either type of IRA. Furthermore, investors who decide on a self-directed Roth IRA should be aware that they may be required to pay taxes if the funds are converted from a traditional IRA. It is wise to consult with a tax professional before converting funds to a new account type.

After contacting the new retirement account custodian with your information to start the conversion process, the account should be ready for you to fund it and to begin investing in cryptocurrency.

Find a Cryptocurrency-Friendly Retirement Account  

To safely invest in crypto with your self-directed IRA, look for a platform based in the United States that offers custody insurance1 and cutting-edge security2. Bitcoin IRA* provides customers in all 50 states with more than 60 cryptocurrency investing choices through easy-to-use mobile and web-based platforms.

It’s the world’s first and most trusted crypto IRA platform that offers 24/7 trading and allows users to buy, sell and swap their cryptocurrencies with their self-directed retirement accounts. Visit BitcoinIRA for more information today.

2Security 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.


Recommended articles: Why Investors Bank on Bitcoin Instead of Social Security

Guide to Cryptocurrencies in a Roth IRA

Take control of your retirement today.

Trust America’s #1 Bitcoin IRA and invest in your future with revolutionary digital assets. Open an account and self-trade 24/7.

Take control of your retirement today.