An IRA, or individual retirement account, is a tax-advantaged retirement savings account held by an individual that is not tied to their employer.
A Bitcoin IRA works much like a conventional IRA, except you’re buying Bitcoin instead of mutual funds. There are no tax consequences for either:
- rolling over an old 401(k) into a Traditional IRA
- diversifying your existing retirement portfolio by buying Bitcoin inside an IRA
To get started you can:
- Open a self-directed IRA with a custodian that allows for Bitcoin investments (see options below).
- Fund the account with cash or rollover funds from an existing IRA or 401(k).
- Use the funds to purchase Bitcoin through an exchange or the IRA custodian’s platform.
- The Bitcoin is held in a digital wallet that is managed by the custodian.
- The value of the bitcoin in the IRA can fluctuate based on market conditions.
- When the investor reaches retirement age, they can withdraw the bitcoin or sell it for cash.
This article by Unchained offers an in-depth look at Bitcoin IRAs.
Here are some notable Bitcoin-based IRAs:
Swan Bitcoin IRA
Swan Bitcoin IRA offers accounts with no upfront fees, a 0.99% trading fee, and a 0.25% annual administration fee for accounts under $100,000. Above $100,000, the monthly management fee is 0.02083% of the balance at the end of the month (0.25% annually)
The fees are $20 per month or 0.25% annually for balances >$100,000. Bitcoin buys and sells are charged a 0.99% transaction fee.
Bitcoin IRA is available to all United States residents, including New York and Texas, who are 18 years or older
Unchained IRA
Unchained IRA accounts have a $950 set-up fee, a $250 per year account fee, and a 0.5% trading fee.
There’s a $6,000 minimum for each USD rollover or annual contribution. You are not required to make a rollover or contribution in any given year. There are no credit card purchase options. Available in the US only.
Unchained has a blog post explaining the IRA process.
To be eligible for the Unchained IRA, you need a U.S. Social Security Number and a U.S. mailing address. The address cannot be a P.O. box
Coin IRA
Coin IRA is a cryptocurrency IRA provider that allows investors to invest in Bitcoin, Ethereum, and other digital currencies as part of their self-directed IRA.
Coin IRA does not charge any account setup fees, account maintenance fees, or cryptocurrency storage fees
Coin IRA holds cryptocurrencies in a custodial legal trust account. The trust is in the investor’s name as the beneficial owner. Coin IRA works with Equity Trust (an IRS-approved custodian) to ensure regulatory compliance, and independent oversight to prevent fraud and unauthorized fund usage.
Coin IRA has a 0.99% trading fee and a 0.25% annual administration fee for accounts under $100,000. Above $100,000, the monthly management fee is 0.02083% of the balance at the end of the month (0.25% annually).
