Some of our potential customers have asked about our IRS-compliance and this article provides additional details for them.
To begin: “yes,” our program is fully IRS-compliant and holding cryptocurrency in your retirement account is the same as holding other alternative assets such as real estate and precious metals.
Your Bitcoins and other cryptocurrencies are held in a sanctioned IRA at an IRS-compliant custodian. We do not hold your funds; we facilitate the rollover or transfer from your existing IRA (e.g. Fidelity) to our custodian. A custodian takes on the responsibility of safekeeping and administration of your retirement account assets and reporting of all activity within the account to you and the IRS.
Bitcoin IRA Works with Kingdom Trust to Ensure IRS Compliance for your Cryptocurrency IRA
Your cryptocurrency IRA is held by Kingdom Trust, a custodian who services clients in all 50 states and holds custody of over $12 billion in assets for over 100,000 clients.
Unlike traditional investment custodians who are limited to the stock market, Kingdom Trust specializes in providing flexible and innovative custody solutions for alternative assets. That’s why Kingdom Trust is the perfect custodian for investing in cryptocurrency; they are a federally approved custodian according to IRS Code Title 26 Sec. 408. Kingdom Trust qualifies as a bank under the IRS guidelines.
Kingdom Trust takes on the responsibility for ensuring that your self-direct IRA in cryptocurrency is compliant with all IRS tax laws.
Beware of Companies Offering “Checkbook LLC” IRAs
A checkbook LLC is a “do-it-yourself” model of investing in a self-directed IRA and it can be very dangerous. It puts all the responsibility of ensuring IRS compliance on your shoulders. Setting up a self-directed IRA in cryptocurrency in the checkbook model requires you to find a trustworthy Bitcoin exchange platform, purchase the Bitcoins, and securely store the investment.
Now, if you’re not a tax lawyer or CPA, this whole process can get tricky fast. It’s easy to accidentally make a prohibited transaction and get yourself in trouble with the IRS.
Beware of “Experts” With Hidden, Self-Serving Interests
Bitcoin IRA is completely transparent about its partners and purpose, unlike other “experts” and bloggers who often write with a hidden agenda that is self-serving.
Some of these writers will boast about their “expertise,” but may not be a licensed custodian, administrator, tax attorney, or CPA or have any other certification. They may also have inappropriate and disparaging reviews of other Bitcoin companies only so they can try and sell you their own alternative, less-credible services.
Some stand to lose a great deal if Bitcoin succeeds such as the Chief Executive of JP Morgan, Jamie Dimon. He recently called Bitcoin a “fraud” and offered dismissive terms towards cryptocurrencies. Bitcoin is decentralized and, as such, it threatens the strangle-hold banks and governments have on financial transactions. Thus, Mr. Dimon’s criticisms merely reflect his fear of a currency which he can’t control of profit from. It’s in Wall Street’s best interest to refute Bitcoin in order to protect their monopoly.
Bottom line: don’t trust bloggers who may be self-serving and unqualified and don’t trust opposition spokesman who may stand to lose the most with the success of Bitcoin.
BitcoinIRA.com is IRS Compliant
Bitcoin IRA has formed a strategic relationship with Kingdom Trust because they are a trusted and well-established custodian capable of handling a cryptocurrency self-directed IRA and ensuring IRS compliance. Bitcoin IRA itself is licensed and bonded in every state in which it is required and insured up to $1 million per client for transactions.
Our program is 100% IRS-compliant and the flagship service for investors looking to purchase Bitcoin and other digital currencies for their IRA.