Bitcoin IRA

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Bitcoin IRA
IndustryCryptocurrency
Founded2015
Headquarters
Sherman Oaks, California
,
USA
ProductsBitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), Ripple (XRP), Litecoin (LTC)
Websitebitcoinira.com

Bitcoin IRA is an American company that combines various cryptocurrencies with Individual retirement accounts. Contrary to some reports, no investment - including Bitcoin[1][2][3] - is approved by the IRS as an IRA investment. The ability to buy Bitcoin in an IRA is supported, but not plainly endorsed, through a 2014 IRS ruling[4] that clarified the tax treatment for Bitcoins as non-currency personal property which is similar to stocks, and presumably compatible with IRA's.

History[edit]

Bitcoin IRA is a privately held company founded in 2015 in Sherman Oaks, California. At first, the company solely offered Bitcoin as an investment option for IRA retirement accounts. In April 2017, the altcoin Ethereum (ETH) was added as an asset for investment. Investors could invest entirely in one coin or a percentage of both coins. As of August 2017, the company's products include Bitcoin, Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), and Ripple (XRP).[5][6][7][8]

On March 25, 2014 the IRS ruled cryptocurrencies are treated as property. Based on this ruling, cryptocurrencies could then be purchased in a self-directed Individual Retirement Account (IRA).[9] BitcoinIRA.com acts as a custodian for rolling over funds from existing traditional fiat currency IRA, Roth IRA, or 401k accounts into a cryptocurrency based IRA.[10][11][12][12][13]

Bitcoin IRA cryptocurrency retirement accounts are approved by the IRS as qualified retirement accounts, where growth accrues tax-deferred.[14][15][9][16][17]

Investors and especially seniors should be especially careful when dealing with this company. The company does not use licensed investment advisors. It has been investigated by law enforcement officials. The company is affiliated with Fortress Gold Group and sells gold coins to unsuspecting seniors at outrageous markups that has caused some seniors to lose the bulk of their retirement savings.

In a July 2017 interview with CNBC, Chief Operations Officer, Chris Kline stated that in its first year, the company averaged a million dollars of monthly inflows. And as of today, the company does the same volume of business in a single day.[18]

Security[edit]

Bitcoin IRA uses only BitGo as its digital wallet and security provider for cryptocurrency retirement assets.[19] BitGo allows for multisignature security with three keys generated and kept in cold storage in separate locations. Bitcoin IRA then requires government issued identification and voice verification to transfer funds.[14][20][19][21]

References[edit]

  1. ^ "The IRS NEVER Approves IRA Investments". SelfDirected.org. SelfDirected.org. Retrieved 9 October 2017.
  2. ^ "Bitcoin IRA: Not Approved by the IRS". Forbes.com. Retrieved 13 October 2017.
  3. ^ "An Important Message for Taxpayers with IRAs The IRS Does Not Approve IRA Investments" (PDF). IRS.gov. Internal Revenue Service. Retrieved 9 October 2017.
  4. ^ "IRS Virtual Currency Guidance : Virtual Currency Is Treated as Property for U.S. Federal Tax Purposes; General Rules for Property Transactions Apply". IRS.gov. Internal Revenue Service. Retrieved 9 October 2017.
  5. ^ "Bitcoin Retirement Fund Provider Adds Ripple in IRA Product Update - CoinDesk". 31 August 2017. Retrieved 11 September 2017.
  6. ^ "How to Add Cryptocurrencies to Your Retirement Nest Egg - Palm Beach Research Group". Retrieved 11 September 2017.
  7. ^ "Bitcoin IRA launches alternative blockchain product: Fund Scan". Retrieved 11 September 2017.
  8. ^ "Ether IRA Hailed As 'Game-Changer' For Mainstream Adoption". Retrieved 11 September 2017.
  9. ^ a b "Traditional IRAs Are Coming to the World of Bitcoin - CoinDesk". 14 May 2017. Retrieved 11 September 2017.
  10. ^ "We Need to Talk About Bitcoin". Retrieved 11 September 2017.
  11. ^ "Wall Street Journal Investment Observer Wary Of Bitcoin IRA - CryptoCoinsNews". 20 January 2017. Retrieved 11 September 2017.
  12. ^ a b "Bitcoin Offers Diversification For Retirement Portfolios - Bitcoin News". 19 January 2017. Retrieved 11 September 2017.
  13. ^ "President Bush's Former US Director of Mint Offers a Fresh Option to Retirement with Bitcoin Investment". 23 September 2016. Retrieved 11 September 2017.
  14. ^ a b Zweig, Jason (13 January 2017). "Should You Have Bitcoin in an IRA?". Retrieved 11 September 2017 – via www.wsj.com.
  15. ^ "Bitcoin IRA – The First IRA In Crypto – Bitcoin.com". www.bitcoin.com. Retrieved 11 September 2017.
  16. ^ "Bitcoin Boosts Investment Options for Retirement Accounts - Bitcoin Network, News, Charts, Guides & Analysis". 22 September 2016. Retrieved 11 September 2017.
  17. ^ "You Will Potentially Make $354,730 Tax Free If You Invest in Bitcoin IRA". 21 September 2016. Retrieved 11 September 2017.
  18. ^ "Video: Bitcoin IRA Featured on CNBC • Buy Bitcoin IRA - Invest in Bitcoin - Bitcoin IRA". 26 July 2017. Retrieved 11 September 2017.
  19. ^ a b "Add Bitcoin to your Retirement – BitGo for Business". 6 February 2017. Retrieved 11 September 2017.
  20. ^ "Bitcoin Price Fluctuations Taken Into Account When Saving For Bitcoin-Funded Retirement". Retrieved 11 September 2017.
  21. ^ Bajpai, Prableen (9 September 2016). "Looking to invest in bitcoins? You should check this out!". Retrieved 11 September 2017.

External links[edit]