How To Transfer Traditional IRAs to Bitcoin IRAs

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:

  1. Open a self-directed IRA with a custodian that allows for Bitcoin investments (see options below).
  2. Fund the account with cash or rollover funds from an existing IRA or 401(k).
  3. Use the funds to purchase Bitcoin through an exchange or the IRA custodian’s platform.
  4. The Bitcoin is held in a digital wallet that is managed by the custodian.
  5. The value of the bitcoin in the IRA can fluctuate based on market conditions.
  6. 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).