Traditional retirement accounts are limited by regulations, require long commitments, and are not easy for everyone to access. The phenomenal returns realized by some cryptocurrency investors has captured the interest of people looking for alternative ways to fund their retirement.
This interest has led to demand for retirement accounts that allow cryptocurrency in them. Brokers and retirement plan providers have answered the call by creating alternate plans that accept crypto. Learn more about crypto retirement accounts, how to get one, and the risks involved.
You can use an IRA company that allows you to buy cryptocurrency with the account.You’ll need to fund your crypto-compatible retirement account by sending your contributions to that account, transferring funds from your existing account, or rolling over your account to a crypto-compatible one.Once your account is funded, you can buy cryptocurrency from the account.When choosing an IRA that lets you buy crypto from the account, ensure they are regulated and licensed.
1. Find an IRA That Lets You Buy Crypto
The IRS does not allow you to place property (like securities or bonds) in retirement accounts. However, you can buy property with funds from your retirement account and hold it there. Because the Internal Revenue Service (IRS) considers cryptocurrencies property for tax purposes, you can add them to an IRA if the IRA buys it and holds it.
The most challenging part of placing crypto in your retirement account is finding a company that lets you use the funds from the account for purchases. You’ll need to look for a company that allows you to include crypto in a self-directed IRA, which enables you to control what is in your account.
Some examples of crypto IRA companies you can look at are:
BitcoinIRAiTrustCapitalCoinIRABitIRAEquity TrustRegal Assets
There are many other IRA companies allowing cryptocurrency in accounts. No matter which one you choose, it’s essential to vet them to ensure they are legitimate and regulated. Additionally, you should look out for…