The TRUTH About Investing In A Bitcoin IRA

Bitcoin IRA Investment

Saving for your retirement is an investment into a secure future, and therefore it’s one of the most important investments you’ll ever make. 

But between the dozens of IRAs and 401(k)s out there, choosing the right investment plan can be downright confusing. And to make it even more complicated, you now have the option of investing in cryptocurrency in the form of Bitcoin IRA.

So what exactly is Bitcoin IRA, and is it a worthy investment? Will you be able to retire happy and settled? Or are you better off going for a traditional IRA? Let’s investigate.

 

What Is A Bitcoin IRA?

A Bitcoin IRA functions similarly to your run-of-the-mill individual retirement account, except with a few key differences.

Just like a standard IRA, a Bitcoin IRA allows you to deposit money into a special for-retirement account and invest in a wide variety of assets. These usually include stocks, money market funds, and bonds. These deposits can also provide tax benefits like a regular IRA.

The major difference between an IRA and a Bitcoin IRA is that the latter gives you the additional option to invest in cryptocurrencies like Bitcoin, Ethereum, Litecoin, and more. 

The cryptocurrency market has exponentially grown over the last few years, with today’s Bitcoin being valued at almost $11,000—when it was less than $3,000 just a couple of years ago. This makes digital currencies a pretty attractive investment option, especially for tech-savvy millennials who are saving up for their retirement fund early.

Another difference is that Bitcoin IRAs are self-directed. A self-directed IRA is offered by some financial institutions to give you, the investor, alternative investment options and more control over your savings. Compare this to a regular IRA where your IRA custodian can dictate what kind of assets you can pour your money into.

 

Comparing Bitcoin IRA VS Your Other Retirement Investment Options

Bitcoin IRATraditional IRATraditional 401(k)
EligibilityAnyone who 

has earned income

Can only contribute

 until 70.5 years of age

Anyone who 

has earned income

Can only contribute

 until 70.5 years of age

21 years old

Must work for an employer

 that offers 401(k)

Account setupIndividualIndividualEmployer
ContributorsIndividualIndividualIndividual

Employer matching

Max annual contribution<50: 6,000

50+: 7,000

Annual contribution must be less than annual earned income

<50: 6,000

50+: 7,000

Annual contribution must be less than annual earned income

<50: 19,000

50+: 25,000

Total must be less than employee’s salary 

OR $55,000-61,000

Tax benefitsPre- or post-tax

Tax deductible

Gains are not taxed

Pre- or post-tax

Tax deductible

Gains are not taxed

Pre- or post-tax

Gains are not taxed

Tax implicationsDistribution taxed as incomeDistribution taxed as incomeDistribution taxed as income
Deduction limitFull deduction 

on incomes up to $193,000

Full deduction 

on incomes up to $193,000

No limit
Distribution59.5 years 

OR if owner becomes disabled

First contribution must have been 5 years prior to retirement

59.5 years 

OR if owner becomes disabled

First contribution must have been 5 years prior to retirement

59.5 years 

OR if owner becomes disabled

Early withdrawalAny time w/o penalty or tax

If not qualified distribution, 10% penalty + tax

Any time w/o penalty or tax

If not qualified distribution, 10% penalty + tax

No, if with employer 

who set up the account

Yes, but with 10% penalty + tax

Investment typesStocks

Mutual funds

Bonds

Real estate

Cryptocurrencies
Other alternative assets

Stocks

Mutual funds

Bonds

Real estate 

Stocks

Mutual funds

Bonds

 

Why You Should Consider A Bitcoin IRA Investment Plan

Tax Deductions

If you contribute to a Bitcoin IRA pre-tax, you can deduct the amount from your taxes up to the allowable limits. This allows you to potentially save up to six or seven thousand dollars a year, which you can funnel into everyday expenses or back into your retirement fund.

 

Non-Taxable Gains

One of the biggest reasons you should invest in a Bitcoin IRA is the fact that any profit you make on your investment cannot be taxed. Usually, if you invest in any traditional assets or even cryptocurrencies outside of an IRA, you’ll have to pay a hefty tax on your capital gains.

But by investing in a Bitcoin IRA, there’s a possibility of tax-deferred growth. You can freely buy and sell digital currencies without worrying about the tax implications. That means more money for your retirement and less stress for you down the line.

 

More Control Over Your Investment Assets

Traditional IRAs offer a larger investment selection than a 401(k), but even that pales in comparison to the kinds of assets you can invest in if you have a Bitcoin IRA. 

As a self-directed account, your options aren’t limited to the usual stocks, mutual funds, and bonds. You have much more freedom to choose alternative investments like precious metals, private mortgages, and yes, cryptocurrencies.

But as with any IRA, you will also have access to an expert, certified custodian who can advise you on your account. So you get the best of both worlds: more decision-making power in the investment of your money and the information you need to make smart financial decisions.

 

Diversified Retirement Portfolio

Ask any financial advisor—you should never have all of your eggs in one basket. Having a diversified investment portfolio that includes stocks, bonds, real estate, mutual funds, and cryptocurrencies is one of the best ways to protect your money in the long-term.

 

Flexible Withdrawals

The best-case scenario is that you’ll only cash out your IRA upon retirement. But in emergency situations, you might need to dip into your retirement savings. Compared to the difficulty of withdrawing funds from your 401(k), accessing your Bitcoin IRA money is fast, easy, and convenient.

 

Conclusion

Do you want a retirement savings plan that gives you more control, more flexibility, and more security? Then a Bitcoin IRA investment like Regal Wallet might just be the solution for you. Contact them to set up an account and get your free crypto IRA kit here: 1-866-906-3023.