Who Is Bitcoin IRA?

Alternative IRA Services (“AIS”) operates under the BitIRA name brand. BitIRA in its own words, describes itself as the world’s first, largest, and highest security cryptocurrency IRA platform. It has over 80,000 account holders. Bitcoin IRA was founded in March 2015 and is based in Sherman Oaks, CA. It’s founder and CEO is Camilo Concha.

What Do They Offer?

Bitcoin IRA is an all-in-one platform for trading cryptocurrencies inside of an IRA. This company is a full-service, self-directed IRA broker, which is different from the many companies offering similar services that require users to mash together different investing assets.

Bitcoin IRA provides its customers with the following:

1. Transfer of an existing IRA to Bitcoin IRA
2. 24/7 cryptocurrency trading
3. Custody
4. Reporting — performance and financial statements

Eligible IRA accounts include Roth, SEP, and Traditional. A 401(k) can be used if it is current. However, to use a 401(k), you must be over 59.5 years of age or have left the employer sponsoring the 401(k) so that it can be rolled over into an IRA. Annuities and pensions can also be used.

The minimum to open a standard account is $3,000. Coins that can be traded on Bitcoin IRA’s platform include:

• Bitcoin
• Ethereum
• Ripple
• Litecoin
• Bitcoin Cash
• Ethereum Classic 

Open A New Saver IRA

You can also set up a new self directed IRA with BitcoinIRA. The company recently released a new product called the Saver IRA that can be started with a minimum deposit as low as $100.

To get started on one of these accounts, you'll need to connect a savings or checking account and set up recurring contributions of at least $100. Your monthly deposits can be automatically invested in the cryptocurrencies that you pre selected.

Earn Interest On Your Crypto

Bitcoin IRA clients can also lend out their cryptocurrency to earn interest. According to the Bitcoin IRA website, you can earn as much as 9% interest on cryptocurrency holdings. Earnings are accrued daily and paid out on a monthly basis.

Do You Need To Form An LLC?

Unlike most companies that offer cryptocurrency IRAs, you do not need to create an LLC to open and keep a self-directed IRA with Bitcoin IRA. It's is a turnkey solution that does all the heavy lifting for you. 

When you go the self-directed IRA route, it can take longer and the costs can be higher than expected. By comparison, it takes about three minutes to open a Bitcoin IRA account and the fees are less than that of a self-directed IRA.

Why Trade Bitcoin In An IRA?

Bitcoin profits are taxed just like profits from trading stocks. If the stock is held for a year or less, the gain is short-term and taxed at your ordinary-income bracket of tax. If held for more than a year, the gain is considered longer-term and taxed at the much lower rate of 0%, 15%, or 20%, depending on your income at the time of filing.

When you trade within an IRA, you don’t have to worry about taxes since gains are tax-free or tax-deferred. With a Traditional IRA, contributions are tax-free, and taxes are deferred on capital gains.

Given the volatility and risk of most cryptocurrencies, statistics show they are often held for less than a year, generating higher short-term gains in the process — trading in an IRA shelters those capital gains from taxes.

Are There Any Fees?

Yes, there are platform fees based on a percentage of your account balance. These fees are also heavily front-loaded based on an estimated hold of 5 years. We recommend speaking to a specialist to further understand front loading and what it means for your investing strategy.

There's also a one time custodial fee of $240. And there are trade fees of 1% per transaction for sell orders and 5% per transaction for buy orders.

These fees aren’t cheap, this company operates under a full-service model. Therefore you are also paying for convenience, ease of access and the all in one solution.