Bitcoin IRA FAQ
There is an initial one-time service fee that varies depending on your investment amount. This service fee covers our comprehensive services, which include full support services for rollover of retirement funds, complete set up of Kingdom Trust IRA retirement account, and best in-class security storage, among other offerings. In addition, there is a minimal custodian and security fee. Please call our representatives to get the fees for your particular investment amount.
BitcoinIRA.com currently offers Bitcoin (BTC), Ethereum (ETH), Ethereum Classic (ETC), Ripple (XRP) and Litecoin (LTC) and Bitcoin Cash (BCH). You can invest in entirely in one coin or a combination of multiple coins.
You can rollover funds from an existing IRA, Roth IRA, SEP IRA, SIMPLE IRA, 403b, or 401k into a self-directed Bitcoin IRA account.
There is a $20,000 minimum and no investment cap. Retirement accounts that hold Bitcoins require significantly more steps and procedures than with cash purchases. Bitcoin IRA provides a full-service solution that facilitates the process for account set up, rollover of funds from an existing IRA custodian, execution of a live trade, and moving funds to a secure digital wallet for all retirement account types.
Blockchain is a form of distributed ledger where new transactions and interactions added to the ledger are collected and verified in groups referred to as blocks. A block is a cluster of transactions, gathered and cryptographically proven. Every ten minutes, a block is verified across the public ledger, granting each user in the network the ability to view the entirety of the network's transaction history. The history is made up of a long chain of blocks of transactions. Read more here.
Since the dollar is now the world’s reserve currency and has been around since 1794, you’ll of course find it has wider acceptance than bitcoin. Still, because of bitcoin’s advantages and its potential as an investment, it’s gaining increasingly faster acceptance.
According to CoinDesk, as of the second week in January 2016, bitcoins are bought and sold in almost 13,000 cities in 249 countries throughout the world. Because of its portability and efficiency of processing, bitcoin is ideal for large transactions. Bitcoin is virtual currency. Instead of paying for a product or service with cash, check or credit card, a user pays over the Internet through a peer-to-peer, decentralized fashion. The payment network through which a user pays treats the transaction as cash.
Spending or withdrawing the funds from any IRA account before you reach the retirement age of 59 ½ will result in early withdrawal penalties. Any IRA account is meant to be a fund drawn upon only after you retire. Selling your funds is approved so long as it is used to reinvest in an IRA or is held in your BitGo wallet in a liquid state.
At this time, you cannot roll your current Bitcoins (or another cryptocurrency) into an IRA. The IRS requires that buying into a cryptocurrency based IRA be done with US dollars.
We will ensure that your transaction is 100% IRS compliant, which will not result in any fees.
According to an official IRS ruling, digital currencies are legally eligible to be held as an asset for a self-directed IRA account. That means your Bitcoin IRA account will receive tax deferred status, allowing it to appreciate in value without immediate tax liability. After you reach retirement age of 59 ½ and begin withdrawing funds, you will pay taxes at that time.