Skip to content

How to Roll Over an IRA Into a Crypto IRA



Although the process of rolling over an IRA into a crypto IRA may seem confusing, individuals can promptly buy and sell cryptocurrency within their preferred investment retirement account with the right guidance. An IRA is a type of investment retirement account that provides useful tax benefits. Generally, rolling over an IRA into a crypto IRA involves four main steps. When deciding to roll over an IRA into a crypto IRA, compare the selection of companies and custodians to determine the option that best suits your needs.


How is a Crypto IRA Different from a ‘Regular’ IRA?

Opening a regular IRA, such as Traditional IRAs and Roth IRAs, is commonly done through financial institutions such as trust companies and banks. However, most financial institutions do not permit their clients to invest in virtual currencies, like cryptocurrencies, due to regulatory complexities.

On the other hand, crypto IRAs were specifically designed to include virtual currencies. These self-directed accounts are ideal for holding alternative investments like cryptocurrency, which regular retirement accounts cannot accommodate. The main advantage of opening a self-directed account like a crypto IRA is the wider range of asset selection it offers. Companies like Bitcoin IRA allow individuals to buy and sell cryptocurrencies within a specially designed retirement account.

Investing in crypto can bolster an individual’s portfolio by providing diversity and spreading out the risk associated with various investment options, such as stocks and bonds. Moreover, the unique opportunity to invest in cryptocurrency can appeal to those who believe in the future strength of virtual currencies. Crypto investments can offer excellent returns over an extended period, and using a crypto IRA to invest in virtual currencies can prove beneficial because of the associated tax advantages and potential future growth.

Before opening a crypto IRA, it is recommended to speak with a financial advisor or other qualified professional to better understand potential account requirements and related fees and to determine if this fits within your overall investment strategy.


4 Steps for Rolling Over Your IRA into a Crypto IRA

Before you can ultimately be eligible to buy and sell crypto within a crypto IRA, the process of rolling over an IRA typically involves four key steps.


Step 1: Open a Crypto IRA Account

Before creating an account, it is advisable to consider the account options provided by different companies and custodians, and compare and contrast the offered account features and benefits.

When comparing potential companies, it is important to prioritize security. Intelligent account security can safeguard your retirement investment from being compromised or potentially stolen by hackers. Bitcoin IRA specializes in placing crypto into a self-directed retirement account and stands out from the crowd with a reputation as the first and most trusted crypto IRA platform.

Opening a crypto IRA can be a time-consuming process, so it is recommended to plan ahead and have important documents available to expedite the process. Creating an account requires identity verification using government documents like a passport or a driver’s license. Depending on the custodian, opening an account can take several days.

Depending on the selected platform and company, creating a crypto IRA account may  provide access to useful tools such as account information, current crypto pricing, and informative learning aids designed to educate and inform customers about crypto.


Step 2: Let Your Custodian Know You Want to do a Rollover

A custodian is an entity, such as a bank or trust company. Before funding your new account, it is important to inform your custodian that you intend to roll over an existing IRA. By letting your custodian know your intentions in advance, you can have clear expectations about the upcoming required steps. Check to see if you need to notify your custodian about your intent to roll over a regular IRA into a crypto IRA using a specific form. You will likely need to fill out different forms to prove your identity and confirm key account details. It is often recommended to inform your custodian about your interest in rolling over a regular IRA into a crypto IRA before entering into the process of creating a crypto account.


Step 3: Wait for Funds to Arrive

As the saying goes, patience is a virtue. Fortunately, this particular saying does not need to apply to the process of waiting for your funds. After completing the paperwork, it will likely take about seven days for the funds to be fully transferred. In some cases, it is possible to obtain the funds within three days.

While waiting, you can take the opportunity to research and examine which cryptocurrencies you would like to buy. Platforms such as Bitcoin IRA offer a wide selection of cryptocurrencies to choose from. Cryptocurrencies vary widely in terms of defining features such as price, market capitalization, history, and potential growth. Before purchasing cryptocurrency, take your time deciding whether you would like to buy Bitcoin or altcoins such as Litecoin. “Altcoin” usually refers to an alternative coin to Bitcoin. If you are unsure about what cryptocurrencies to select, consider speaking with a cryptocurrency expert.


Step 4: Buy, Sell and Swap Crypto

After the transfer is complete, you should be able to buy, sell, and swap crypto, depending on the platform you have chosen. While this does not typically impact assets held in a retirement account, it’s important to keep in mind that crypto may be subject to Capital Gains Tax. Therefore, it’s crucial to understand the possible fees and taxes associated with selling crypto to decide whether holding crypto for the short-term or long-term is best suited to your needs.

When deciding which crypto to buy, consider your level of risk tolerance. Some cryptos tend to be more stable, which can provide more risk-averse individuals with a sense of comfort.


Rolling over an IRA into a Crypto IRA is a New Opportunity for Investors

The process of rolling over a regular IRA into a crypto IRA can be beneficial, given the potential for cryptocurrency to achieve impressive growth over time. Select a custodian that best matches your needs and prepare your documents in advance to expedite the process. The option to roll over funds from a regular IRA into a crypto IRA allows individuals to take charge of their future and more easily navigate previously uncharted investment territory. Cryptocurrency is still a relatively new investment that offers a wide range of opportunities for savvy investors.

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.