If you’re looking for a fast way to increase your retirement savings, you may be interested in using a small portion of your retirement savings, to invest in Bitcoin IRA. If you’re interested in potentially doubling your retirement savings or better by investing in Bitcoin IRA, simply continue reading to discover the most important Bitcoin IRA rules, that you should understand before investing any of your savings into a Bitcoin IRA account.
The most important Bitcoin IRA rules to understand, before you make your first Bitcoin IRA investment:
If you want to avoid paying custodial fees and are not an accredited investor, you’ll have to set up a limited liability company.
If you have a net worth of less than $1 million dollars and have a yearly income of less than $200,000 and do not want to pay custodial fees, to an intermediary who will hold your Bitcoin for you, your only option is to set up your own limited liability company, within a self directed IRA. Which will allow you to manage your own Bitcoin wallet and access your Bitcoin IRA account, without having to consult a custodian to authorize your actions.
Just beware that if you choose this particular option, you’ll be responsible for your own paperwork, whereas if you choose a custodian to manage your Bitcoin IRA account, they’ll be responsible for the vast majority of the paperwork which is involved with purchasing Bitcoin IRA! However, some companies such as Bitcoin IRA, are able to handle all of your paperwork for you, in exchange for a one-off fee. Just keep in mind that the fee which you may be expected to pay may be a relatively hefty fee.
You can not use Bitcoin in a Bitcoin IRA account as security for a loan
As an example, if you’re looking to purchase a house, you can’t use assets contained in an IRA account, such as Bitcoin as security against your home loan.
Investors are strictly prohibited from selling Bitcoin to their own IRA LLC
Furthermore, any Bitcoins which are purchased to be stored in an IRA LLC must be stored under the name of your IRA LLC. Investors who choose to register an IRA LLC are strictly prohibited from storing Bitcoin under their own name.
You must report your yearly Bitcoin IRA profit to a registered custodian on a yearly basis
You must report your yearly profits to a registered custodian. As Bitcoin is considered an unconventional investment, you’ll normally be required to hire a third party to assess your yearly Bitcoin profits.
- You may incur hefty penalties for withdrawing funds from your Bitcoin IRA account
If you choose to withdraw funds from your Bitcoin IRA account before you turn 59 and a 1/2, you may be charged a hefty penalty fee. However, in special circumstances, you may be able to make a one of withdrawal, without incurring a penalty fee.
So if you’re interested in investing a proportion of your retirement savings in Bitcoin IRA, make sure that you understand each of the 5 rules listed above!