BitIRA Review: Buy And Sell Digital Currency In Your IRA

Bitcoin has recently received some legit recognition from Elon Musk, companies like Square, and several major banks. This has led it to new highs in a few cryptocurrencies. It seems everyone wants to get in on the action.

But if you're like most people, you have far more money in your retirement account than you do sitting on the sidelines. What if you could tap into your retirement account to trade cryptocurrencies? You’ve no doubt already looked into it and found that your financial services company doesn’t offer cryptocurrencies. No surprise there.

The way to get around this is by using an IRA custodian who does allow you to trade cryptocurrencies. That’s where BitIRA comes in. They focus on moving retirement accounts into IRAs that let customers trade cryptocurrencies in a tax-sheltered account. In this article, we’ll go through how it works. Get BitIRA's free guide to cryptocurrency IRAs >>>

Who Is BitIRA?

BitIRA allows you to create a digital currency IRA for trading cryptocurrencies. It was founded in 2017 and is based in Burbank, CA. You can use a Traditional, Roth, SEP, or SIMPLE IRA. You can also use any retirement account that is eligible to be rolled over to an IRA.

Your retirement account probably restricts your investment choices to just stocks and bonds. But BitIRA provides cryptocurrency trading through your IRA. And because you’re trading in an IRA, there aren’t any taxes to worry about.

Trading cryptocurrencies through an IRA has only been possible since 2014. Through Notice 2014-21, the IRS deemed cryptocurrencies to be property, making them eligible for investment in retirement accounts.

What Do They Offer?

BitIRA handles the entire process of setting up your account, making their offering a turnkey service. The minimum investment to open an account is $5,000. BitIRA uses Equity Trust Company and Preferred Trust Company to custody funds. 

Buying and selling of cryptocurrencies are done through one of BitIRA’s cryptocurrency exchange partners. It does provide a wallet, which is a cold storage wallet. You don’t take possession of the wallet keys as those are maintained by BitIRA. Learn more about BitIRA >>>

Supported Currencies

The following cryptocurrencies can be traded with BitIRA:

• Aave
  
• Bitcoin
• Bitcoin Cash
• Chainlink
  
• Ethereum
• Ethereum Classic
• Litecoin
• Zcash
• Stellar Lumens
  

Is It A Self-Directed IRA?

Yes, your BitIRA account will be a self-directed IRA. In addition to cryptocurrencies, you can invest in other non-traditional assets. These include precious metals and real estate.

The IRS doesn't allow penalty-free distributions from IRAs until age 59 1/2. The same rules apply to your BitIRA. All of your cryptocurrency assets must remain under your IRA until you reach retirement age. If you take distributions early, expect to pay penalties and taxes. Get BitIRA's free guide to digital currency IRAs >>>

Customer Service

BitIRA takes pride in its team of knowledgeable "Digital Currency Specialists" and "IRA Specialists." They're available by phone Monday-Friday, 8 AM to 5 PM (PT) at 1-800-299-1567. You can also email the customer support team at info@bitira.com.

Are There Any Fees?

Yes - there are custodial, storage, and trading fees. Trading fees are per transaction (i.e., buy/sell) and dependent on the partner exchange. Unfortunately, BitIRA doesn't provide a list of partners or offer any trade fee estimates. 

The custodial fees are also unclear. On one page, BitIRA says that customers can expect to pay the following custodial fees:

• Account Set-up Fees — $50
  
• Storage Fees — .05%/month

However, BitIRA's main FAQ page says: "Fees for every account will vary, so it’s impossible for us to tell you here what your fees will be." You may want to talk to a team member to get more specific cost information before moving forward with opening an account.

How Do I Open An Account?

You can visit the BitIRA website to get started by downloading their free guide to digital currency IRAs. If you decide to open an account, you'll need to talk one of their Specialists.

It typically takes 1-3 weeks to complete the account setup process before you can begin trading. However, there are a few variables that can impact the timeline. 

For example, If you're rolling over your retirement account into an IRA, the amount of time it takes will depend on your financial services company. BitIRA also must perform due diligence on new accounts.

Is My Money Safe?

BitIRA is just a holding vehicle for your investments. However, they have taken precautions to ensure that your assets are safe. BitIRA uses an insured cold storage solution for its Digital Currency IRAs. Currencies held in storage are fully covered against theft. 

During the purchase and sale of cryptocurrencies, you are covered by the company’s dollar-for-dollar insurance policy against theft or fraud. BitIRA’s Digital Currency IRA is compliant with Level 2 CryptoCurrency Security Standards (CCSS). 

Any cash held in the account is in an FDIC-insured account.

Is It Worth It?

BitIRA specializes in IRA cryptocurrency investing and has the back-end infrastructure to protect your digital assets. They handle the entire process of setting up a self-directed IRA for cryptocurrency trading, making the process easy. 

We’d say BitIRA is worth checking out if you want to trade cryptocurrencies through your IRA. But before you open a new account or roll over an existing IRA, you'll want to get clarity regarding setup and ongoing fees. Compare self-directed IRA providers here >>>

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