How can I buy bitcoin with an IRA? Is it allowed by the law or will I get into trouble with the IRS? Are there any unique benefits to investing in Bitcoin through an IRA? Join me in today’s article in which we shall take a look at what it takes to begin in cryptocurrencies through an Individual Retirement Account. If this sounds interesting to you, read on till the end to find out more.

P.S.

See my Top-5 Recommended Bitcoin IRA Companies Here

Cryptocurrencies

In its one decade of existence, Bitcoin has been subject to a lot of skepticism, more so since its inception challenged the idea of having a centralized authority. It birthed many more cryptocurrencies, which have gradually come to be accepted as viable currencies. Regulators from all over the world have been striving towards the establishment of clear guidelines to ensure that Bitcoin and other cryptocurrencies are all used for the right reasons.

That said, the response towards Bitcoin has been mixed. There are those countries that banned it outright, while others welcomed it with open arms, with several others remaining indifferent. With time, however, Bitcoin has come to earn its legitimacy in some of the superpowers in the world and has even gone on to create a niche for itself in the global financial ecosystem.

Why should I consider adding Bitcoin to my IRA?

As much as traditional investment vehicles have long continued to dominate the financial markets, the tough economic climate has forced investors to turn to other alternatives. As we saw in the recent past, there were fears of the slowdown of the Chinese economy, as well as major events such as Brexit, which led to investors flocking around alternative assets such as Bitcoin and precious metals such as gold.

According to a report released by McKinsey, the growth in alternative assets has been much higher than that of traditional assets. While most traditional assets have been struggling to beat market forces such as inflation, alternative assets have recorded impressive annual growth rates of up to 14%.

Bitcoin is one of the newest entrants to the alternative investments list, but it has managed to outrank many of the previously preferred alternative assets. Its popularity, as well as that of other cryptocurrencies, has risen very fast. Bitcoin is actually becoming more of a mainstream currency. Interestingly, despite the many questions about its volatility, Bitcoin has still managed to attract huge investments and has come to be endorsed by popular celebrities as a reliable payment option.

Just like the internet

There is a popular belief around the world that Bitcoin is similar to how the internet was like in the initial years. There were those who saw the potential of the internet taking its place in the entire world as a must-use for everyone, but there are those who only saw its dark side. The truth is that most technology has its upsides and downsides, and it is up to us to decide how to use what we have at our disposal.

The thing about Bitcoin is that it presents buyers and sellers with a quick, cheap, and efficient medium for transactions. This has made it a viable solution in areas in which there are inadequate banking facilities. It has also become a favorite option for speculators who are out to gain from price patterns, as they also make payments and money transfers.

Beyond that, Bitcoin has shown great power during financial chaos and is being used as a suitable diversification instrument. However, the price volatility of this cryptocurrency has scared many people away from attempting to invest in it. In the present times, however, Bitcoin can be added to an investor’s retirement portfolio, hence enabling them to circumvent the short-term volatility, as they enjoy the diversification benefits.

How to buy Bitcoin for retirement?

Most of the individual retirement accounts you will come across today are managed by custodians or trustees on behalf of the investors- these are mostly financial institutions that such as banks and brokers, and they hold paper assets (shares/stocks, mutual funds, bonds, and certificates of deposit (CDs) on behalf of the investors. Common examples of IRAs include:

• Traditional IRAs
• Roth IRAs
• Simplified Employee Pension (SEP) IRA
• Savings Incentive Match Plan for Employee (SIMPLE) IRA.

Outside of the traditional assets, however, there are numerous diversification opportunities that can be tapped into through buying and holding assets such as:

• Gold
• Promissory notes
• Real estate
• Tax lien certificates
• Private placement securities
• Cryptocurrencies such as Bitcoin

To benefit from any of the above-listed assets, investors can open self-directed IRAs through specific custodians and trustees.

Adding Bitcoin to a self-directed IRA is quite simple and fast. It mainly involves opening your new self-directed IRA (that will then be called a Bitcoin IRA), through populating an application form (an e-sign application) with your details.

Upon opening the account, you can then fund it through an IRA rollover or through a direct transfer of funds from your bank. You finally have to complete the Bitcoin allocation order that outlines how much money will be used to purchase your preferred cryptocurrencies.

Most of the regulations that are followed by self-directed IRAs are similar to those followed by other types of IRAs. This means that you cannot access the funds in your account until you have hit 59.5 years- you will otherwise get hit with a penalty for early withdrawal. There are several Bitcoin IRA companies that can help you understand the rules surrounding Bitcoin IRA investments.

The thing about investing in Bitcoin through a self-directed IRA is that it places the power to create money in your hands. By having a small portion of your retirement funds allocated to Bitcoin, you can rest assured that you are doing your entire portfolio justice, by ensuring that it is well-diversified.

Get started with Cryptocurrency investments today – open a Bitcoin IRA through one of the following companies:

See Gold Retired’s Top-5 Recommended Bitcoin IRA Solutions

OR

See Gold Retired’s Top-5 Recommended Gold and Silver IRA Solutions

That will be all for this article on how you can buy bitcoin with an IRA. I hope that you found it helpful and that you can now decide on whether to invest in cryptos and how to get started. If you still have any questions about how you can get started with investing in Bitcoin through an IRA, drop them in the comments section and I will get back to you ASAP.

I wish you well,

Eric, Investor and Team Member at Gold Retired!

Today we shall be answering the question “ Can I convert my 401k savings to bitcoin”. Even though you do not end up becoming extremely wealthy through investing in Bitcoin, you might end up building an impressive retirement investment portfolio simply by purchasing Bitcoin with your 401k. Is it really possible to achieve this? Read on to find out.

P.S.

See Gold Retired’s Top-5 Recommended Cryptocurrency IRA companies

Investing in Bitcoin, which is one of the 1500+ cryptocurrencies that are available in the present-day world, is bound to present a number of benefits to you that other assets may not come close to. By investing the funds in your 401k in Bitcoin ( you can do this by simply converting your current retirement plan into a self-directed IRA), you gain more freedom to make choices related to the state of your portfolio. Essentially, opening a self-directed IRA gives you more options when it comes to your retirement plan, in a manner that any other conventional IRA cannot. 

There are, however, some other details that you will need to consider before rolling over the funds in your 401(k) into a Bitcoin IRA.

What you need to know about your 401k options

With a typical 401k, companies usually offer their employees a limited list of choices into which they can put their money. In most cases, the best they can get is ETFs and Mutual Funds. Some of them may give their employees the option to invest in company stocks as well. Only very few employers will allow the employees to invest in any type of asset. This is all thanks to the Employee Retirement Income Security Act of 1974 (1974). 

With this law, the rank-and-file worker’s retirement savings are usually protected in a variety of ways, including the requirement of plan trustees (the employers) to act as fiduciaries. This essentially means that they are required by the law to take thorough care of the employees’ funds. If they do not meet this obligation, they can be held liable for all losses on the side of the employee. 

One of the very common reasons that 401(k) account owners sue their employers is usually due to poor choice of investments ( which eventually lead to massive losses). Their argument at this juncture is usually that their employer ( or the financial advisor entrusted with making a decision on investment options) is not taking the right approach to choose their securities, and is exposing them to undue risk levels that are bound to make them lose their hard-earned money.

No business owner will, of course, want to be in a situation in which they are being sued, which is why they generally tend to stay clear of any risky investment option. This is probably why your employer won’t allow you to invest in Bitcoin through your 401(k).

Remember – No Investment is Risk-Free!

So far, if you have been following Bitcoin prices, you can tell that they are to a great extent based on speculation. It is, for instance, expected that Bitcoin will cross the $100,000 per token mark. There are also those who think that the use of cryptocurrencies will eventually die down, and lead to a decline in the value of all tokens. Overall, I think we can all agree on the fact that no investment is risk-free, and that the same risks borne by cryptocurrencies are also borne by stocks ( as has been proven during global recessions when all stock prices tank).

Most asset prices are speculative, besides some very stable assets such as gold whose prices tend to gradually rise ( and to move in the opposite direction with stocks) during an economic crisis. One may need to research which assets they want to include in their retirement investment portfolio, but I would recommend diversification, as an approach to ensuring that investor sails through the tough economic times without worrying that they’ll lose all their wealth.

Diversification will always ensure that even as some assets perform poorly, the others will be doing great, and the net effect will be slow growth ( or minimal losses).

Is there a way in which you can invest your retirement savings in Bitcoin?

If you have done your research and established that Bitcoin is worth holding in your retirement portfolio, then there are ways in which you can use your retirement savings to get started. If you have an employer that offers you a self-directed 401(k), you have a chance at purchasing cryptocurrencies directly through it. You can confirm with the Human Resource department whether this option is available at your company, or you can request that this option be availed if it is not already available. 

You can also decide to open your self-directed IRA. Opening an SDIRA is similar to opening a regular IRA, with the only difference coming in with the type of assets that you can invest using the SDIRA. SDIRAs are not as common as the regular IRAs (Traditional and Roth IRAs), so you will have to do your due diligence as to which SDIRA service provider will have your best interests at heart. Also, do not forget to confirm that cryptos are supported by the SDIRA service provider, to avoid any awkward surprises later on. 

Consider future investment choices

You should know that not all self-directed IRAs offer the same investment choices, hence the need to not just open an account blindly. Even though you have established that the company can let you invest in a particular asset, you can also request to know which other assets they can allow you to also invest in, in the future, if you need to diversify your portfolio.

If you do not want to jeopardize your retirement savings, you can try to invest any extra money that you have through a cryptocurrency exchange, though I can bet you that you may end up encountering almost similar risks. Besides, investing in Bitcoin through an SDIRA will present some tax advantages that you would otherwise not get if you decided to go the crypto exchange way. 

Whatever option you decide to go with, do not forget that your retirement savings will be your financial lifeline when you get to your senior years, so you cannot afford to gamble with them. Think carefully about the type of investment you will put your retirement savings into, and always seek a third-party opinion. If you have decided that you will invest in Bitcoin by opening an SDIRA to roll over your 401 (k) funds into, then try to ensure that you do not invest more than 10% of your wealth in cryptos (the same applies to other assets). 

See Gold Retired’s Top-5 Recommended Bitcoin IRA companies

OR maybe you are interested in another good old alternative asset:

See Gold Retired’s Top-5 Recommended Gold & Silver IRA companies

That will be all for today’s article, which sought to respond to the question on “Can I convert my 401k savings to bitcoin”. I hope it was beneficial and that you are now in a better position to proceed with the opening of your SDIRA. If you need any suggestions or recommendations, let me know – simply drop your question in the comments section and I’ll get back to you ASAP.

I wish you well,

Eric, Investor and Team Member at Gold Retired!

Can I move my 401k to bitcoin? If yes, how can I do so without getting into trouble with the IRS? Are there defined steps that I should follow, to ensure that the process is smooth and that I end up with Bitcoin in my IRA as planned? If you’ve been asking yourself such questions, then you are in the right place because in today’s article we shall cover all this and more. If this sounds interesting to you, then read on to discover what it will take to move the funds in your 401k 2 Bitcoin. 

P.S.

See my top-5 recommended Bitcoin IRA service providers

Is it possible to invest in Bitcoin with your 401k?

Even if you do not end up becoming a bitcoin millionaire, now might be a good time to consider buying cryptocurrencies. Figuring out which is the best cryptocurrency to invest in right now is a question for another day. Herein, we shall focus on establishing whether you can use the funds in your 401(k)  to invest in Bitcoin.

For starters, it will be good to highlight that, different 401(k)  accounts, offer different benefits and have different rules. This means that one employer may allow you to invest in Bitcoin using your 401(k) funds,  all the others may be totally against it. You, therefore, have to check the terms and conditions outlining What is expected of you as the 401 k  account contributor. 

As you will come to learn, however, investing your 401 k savings into Bitcoin may involve you opening a self-directed IRA (SDIRA). An SDIRA  is a relatively unknown type of IRA  that grants you the opportunity to invest in non-traditional asset classes, that offer more potential. This means that you ought to understand everything there is to know about self-directed IRAs before deciding to invest in Bitcoin using your 401 k savings. 

Also, you need to have some basic knowledge of cryptocurrencies, because there are more than 1,600  of these digital coins today. The good thing, however, is that if you choose a reliable Cryptocurrency IRA,  they will help you with the necessary educational resources so that you can know what to expect by putting your 401 k savings into crypto investments. 

Buying Bitcoin with your 401(k) savings

In a few days from today, you can successfully convert your 401 k savings to Bitcoin.  Most 401k programs do not allow investors to directly purchase cryptocurrencies, hence the easiest way to gain exposure to Bitcoin is through opening a self-directed cryptocurrency IRA.

Self-directed means that you are in charge of making the investment decisions, provided that they all fall within the rules and regulations set by the IRS. The good thing, as we have already seen, is that the IRS allows investors to invest in an assortment of assets, including the non-traditional ones such as cryptocurrencies, and precious metals such as gold and silver.

Eligibility to move your 401k funds to Bitcoin 

For starters, you need to have a 401(k) account from your current or former employer, and you need to be over 59.5 years old. There are other eligibility requirements that you must adhere to, but these depend on the retirement plan that you have ( that is if you want to use the funds in your Roth IRA, 403(b), 457, as well as Thrift Savings Plan (TSP) ). 

Also note that the rules highlighting the 401(k) to self-directed IRA rollover eligibility are not always clear, and can vary from one person to the other. If you’re therefore confused about whether you’re eligible for such a rollover, you can contact any of the companies in the link below:

==> Top-5 Recommended Bitcoin IRA service providers <==

The above companies are all run by professional staff, who are well-versed with the rules surrounding 401(k) to Bitcoin rollovers. Making a Bitcoin investment should, as such be easy since they can help you with the whole transfer process, to ensure that it is quick and easy. 

The 3 step process you can follow to convert your 401(k) savings into Bitcoin

Once you have verified that you are eligible for a 401(k) to Bitcoin rollover, you can follow the steps below, with the help of the service providers in this industry (self-directed IRAs), effectively move your 401(k) savings to a Bitcoin IRA.

Open your self-directed Bitcoin IRA 

You should open your account with a qualified custodian so that you can commence the process of transferring your 401(k) funds to your new digital SDIRA. To set up your account, you will have to complete paperwork with your custodian of choice. Make sure you do sufficient research to establish whether the custodian you intend to work with is trustworthy and reliable, so that you don’t end up getting stuck, and without a crypto investment.

Fund your newly created SDIRA

Your custodian will help you to effectively fund your account, in readiness for the third step of the process. There are many rules that surround the SDIRA funding process, so you will need all the help you can get to ensure that you do not get into trouble with the IRS. 

Purchasing and storing your Bitcoin 

Upon funding your newly created account you can proceed to purchase your preferred cryptocurrencies. As we already saw, there are about 1600 cryptocurrencies, so Bitcoin does not have to be your only choice. Bitcoin is in most cases used to represent other cryptos in general conversations since it is the crypto with the largest market capitalization. Your Bitcoin needs to be stored in a secure cold storage wallet. Cold storage technology is the best storage in the entire industry, so you should ensure that your cryptos are not stored in any other type of storage. 

Questions to ask yourself ( and your custodian) as you do a 401(k) to Bitcoin rollover 

Asking the right questions will always get you started on the right foot, for any type of investment or asset. As you transfer the funds in your 401(k) to a Bitcoin SDIRA, you should seek the answers to the following questions:

• Is your custodian reliable and professional?
• Which cryptocurrencies will you purchase for your IRA?
• What are the fees charged? What do they cover?
• Will your cryptos be secure?

If you are confident that you would want to get started with Bitcoin investments today, below are some companies that can help you get started on the right foot. 

See Gold Retired’s Top-5 Recommended Bitcoin IRA companies

OR maybe you are interested in another alternative asset:

See Gold Retired’s Top-5 Recommended Gold & Silver IRA companies

That will be all for this article in which we have addressed the question “ Can I move my 401(k) to Bitcoin?”. I hope that you now have the answer to this question and that you know what you’ll do moving forward. Let me know if you have any questions with regards to today’s topic, or whether you’d need help with deciding which company is best suited to help you achieve the dream of becoming a bitcoin investor.

I wish you well, 

Eric, Investor and Team Member at Gold Retired!

How can I Invest in a bitcoin 401(k)? Generally, when most investors think of IRA investments they typically have stocks, bonds, or mutual funds in mind. However, some people who are familiar with Self-Directed IRAs may be able to invest their money into alternative assets such as real estate and even precious metals but many don’t know that the available options for them also include cryptocurrencies like Bitcoin. You may be asking yourself, how can I invest in a bitcoin 401k? Don’t worry, we will explain all that in this article. If you are interested in converting part of your retirement account into a Bitcoin IRA, read on to find out how.

A standard 401k account

A 401k is an individual retirement account that operates similarly to a traditional IRA. They both allow for tax-deductible contributions into an investment account that will grow without taxation until the funds are withdrawn, at which point they will be taxed as ordinary income. While there are several similarities between these plans, there are also several key differences. The best way to understand these differences is to be aware of the pros and cons of both plans.

Pros  of Traditional 401k Plans

– Contributions are tax-deductible, so less money goes toward taxes than if you paid taxes on your income rather than investing it.

– Investments grow tax-deferred until they are withdrawn, which can result in a significant amount of interest over time.

– In some instances, you can borrow from your 401k for certain expenses, such as college tuition or buying a home. To do this, you must pay the money back either with interest or through increased contributions to your account

– You can control and decide where your money is invested and how it will be invested

– Your account balance affects your company’s matching funds, which can be a significant amount of money

Cons of Traditional 401k Plans

– You may have a limited investment choice if you are restricted to certain types of accounts, such as being tied only to mutual funds from your chosen provider. While some providers offer access to individual stocks, this is a much less common option

– If you choose a fund that has high fees or a high minimum investment, it can significantly reduce your returns over time. In either of these cases, you could be better off choosing an IRA if the only option available to you through your work is a costly fund

– You may have to pay taxes on your contributions if you withdraw them before you reach the age of 59.5, which can significantly reduce the money that is available to you

– If you need to take money out of your account for an emergency before it has been in there more than five years (or longer depending on your specific plan), you will most likely be charged a 10% early withdrawal fee

– You are restricted to the types of investments available in your employer’s plan. For example, if your company offers access to an S&P 500 mutual fund, you cannot invest in anything outside of this fund while still taking advantage of the tax benefits

– If you lose or quit your job, it does not matter how much money you have in the account, you will not be able to continue to make contributions for a year from that point

– You must follow all of your employer’s rules and regulations for withdrawals. The withdrawal process can be time-consuming and frustrating if there are too many holds on your account or you need access to your funds quickly. In some cases, you may have to wait 60 days from the time of your request for funds.

How to invest in a Bitcoin 401K

After cryptocurrencies were recently declared as property, they have become a new investment option for those with an IRA. CoinIRA makes it just as easy to invest in Bitcoin and other digital currencies through your IRA as you would be able to do so with stocks or mutual funds.

All the same, rules apply to a cryptocurrency IRA like any other. If you choose to open a traditional one, transfer in an existing IRA of the same type or rollover funds from an eligible pre-tax retirement account like 401k.

If you decide on Roth instead, make sure it comes from another post-tax retirement account such as your Roth IRA.

A Cryptocurrency IRA works the same as a regular Roth IRA. All contributions are subject to contribution limits and tax treatment, so you can contribute up to $5,500 per year (as of 2018) if you’re under 50 or $6,500 if you are older than that. You must keep your assets with an approved custodian who will safeguard them for safekeeping while also reporting any transactions to the IRS like other types of IRAs do.

You should always choose which type of crypto wallet is best suited for keeping cryptocurrencies secure before choosing one because they vary in function and security level depending on how it’s set up but generally speaking every reputable cryptocurrency exchange website has options where users can create their own wallets online without needing additional assistance from support.

As with a regular IRA, leaving early before reaching 59½ can be subject to fines and taxation. And when you turn 72, you may need to start receiving the Minimum Payment Requirements (RMD) depending on your IRA type. It is always best to consult with your tax advisor to obtain reliable information about the requirements for the different types of pension accounts you may have.

Conclusion

Bitcoin IRAs give you the opportunity to diversify your annuity with opportunities to add value to your account as well as stocks. Cryptocurrencies like bitcoin are a great way to diversify your retirement portfolio, but it’s also important to understand the requirements for investing in them. Consult an advisor about how Bitcoin can fit into your IRA or 401k account today!

Here are some top Bitcoin IRA companies worth considering

See Gold Retired’s Top-Recommended Bitcoin IRAs

OR

See Gold Retired’s Top-Recommended Gold and Silver IRAs

That will be all for this article in which we have covered the question “How can I Invest in a bitcoin 401(k)?”. I hope that you enjoyed it and that you now have an idea of what to do as you get started. You can also check out the recommended Bitcoin IRAs, and even request free IRA investing guides from them. Let me know if you have any questions about this topic.

I wish you well,

Eric, Investor and Team Member at Gold Retired!