What is Bitcoin IRA?
What is Bitcoin IRA? The term IRA refers to an individual retirement account, which you can set up to fund your retirement. IRA accounts are extremely popular as there offer a wide variety of tax breaks. However, what most individuals don’t realize is that IRA accounts can contain a wide variety of assets and investments, such as stocks and mutual funds.
As a result of the increasing popularity of digital currencies such as Bitcoin, Bitcoin IRA accounts have become an increasingly popular option for investors who are looking to save for their retirement. If you’d love to spend your retirement living in comfort, it’s well worth continuing reading to discover everything you need to know about Bitcoin IRA.
Everything you need to know about Bitcoin IRA:
- It is 100% legal to purchase Bitcoin as an IRA investment
In the USA, the only asset classes which are currently prohibited from being purchased as an IRA option are life insurance policies and collectables. As Bitcoin IRA isn’t classed as a collectible or a life insurance policy, it’s 100% legal to purchase Bitcoin IRA.
- There are unique set of risks associated with investing in Bitcoin IRA
If you choose to invest money in Bitcoin IRA, beware that there may be a limit on how much money you can invest in Bitcoin IRA per year. While there is no limit to the amount of money which you can invest in traditional Bitcoin if you choose to invest in Bitcoin as an IRA option you’ll face caps, which have been put in place to prevent individuals taking advantage of the system.
As it’s far more cost-effective to purchase Bitcoin IRA than Bitcoin, due to the significant tax breaks which IRA investments offer and the government wants to prevent individuals from purchasing Bitcoin IRA, who aren’t looking to save for their retirement and simply want to make a sizeable return on investment, in the short term.
It’s also worth noting that you may face financial penalties if you choose to withdraw Bitcoin which you have invested in a Bitcoin IRA account before you reach retirement age. So if you’re looking to purchase and sell Bitcoin for profit in the short term, it’s well worth purchasing some traditional Bitcoin stocks as well as Bitcoin IRA stocks.
- The most common type of Bitcoin IRA account is a self-directed Bitcoin IRA account
The most popular type of Bitcoin IRA account is a self-directed Bitcoin IRA account, which you set up yourself. However, you can also sign up for an account with a company named Bitcoin IRA, who can assist you with setting up a Bitcoin IRA account. As an example, Bitcoin IRA will help you complete an IRA application form, which you’ll need to fill out before you’re able to transfer funds from your existing IRA account or 401k account, to purchase your Bitcoins.
So if you’re excited about the possibility of being able to enjoy tax breaks to purchase Bitcoin, which is set to skyrocket in the future, it’s well worth finding out more information about Bitcoin IRA.