Special Report

The Crypto IRA Blueprint

Make no mistake, cryptocurrency is coming to American retirement plans.

Bitcoin, Ethereum and many others are well on their way to becoming digital gold. One day, crypto will be held alongside gold, stocks and bonds in the 401(k)s and IRAs of millions of Americans…

Unfortunately, we are still years away from your average run-of-the-mill 401(k) offering cryptocurrency to everyday working people.

The systems aren’t there yet.

But using the technique I’m sharing today… you don’t have to be stopped by that.

There is a way around the financial industry’s foot-dragging. You don’t need to wait for your brokerage to let you put crypto in your retirement fund. You can do it yourself, and it’s not nearly as hard as you might think.

Let this report be your cryptocurrency retirement blueprint…

Hacking Your Financial Future…

The average American worker has a 401(k) or some other retirement plan through their company. And that’s great. A 401(k) is a very powerful tool for the everyday person to save for retirement.

You can legally hold crypto in your 401(k), but you’re not likely to be offered the option. The IRS considers cryptocurrency to be property, like stocks or bonds, and taxes it in the same way. But alternative investment options aren’t likely to be allowed in any employer-backed 401(k)…

But if you open your own self-directed IRA, or SDIRA, then holding crypto in it is fair game.

You will need to do a bit more legwork with an SDIRA, but the rewards are more than worth it. SDIRAs are held through a custodian or trustee, but the account holder is in sole control of the assets that go into the account – hence “self-directed.”

Not all custodians will offer cryptocurrencies, and not all custodians are equally reputable – but there are plenty of good ones out there. You’ll just need to shop around to find one you trust that offers what you want.

Then, you’ll need to decide whether you want a self-directed traditional or Roth IRA. The main difference between the two is how they are taxed.

With a traditional IRA, you get an upfront break on your taxes. You won’t have to pay the piper until you withdraw funds during your retirement.

With a Roth IRA, on the other hand, you pay taxes upfront. Then, your contributions and earnings grow tax-free. Your qualified distributions (income from the Roth SDIRA) will also be tax-free.

Aside from that, there are no income limits for opening a traditional IRA, but you need to be below a certain income threshold to open a Roth IRA.

There are also no withdrawal penalties with a Roth IRA. You can take all your money out of it at any time for any reason with no new taxes or penalties. Withdrawals are then tax- and penalty-free after age 59 1/2 as long as the account is at least 5 years old.

No matter the type of IRA you choose, opening an account is fairly easy. The process will vary depending on the custodian or trustee you’re getting the IRA through.

Because there are so many variables involved in setting up an SDIRA, talking to your financial advisor is recommended.

Once you’ve opened your IRA, you need to fund it. You can either roll over an existing account or transfer funds from elsewhere.

Then, it’s as simple as completing an allocation order for your selected cryptocurrency. Most brokerages will offer Bitcoin, but if you’re interested in a different cryptocurrency, you will need to do some digging to find a custodian that works best for you.

Not every SDIRA custodian will offer cryptocurrency, but Equity Trust Company, IRA Financial Group, Alto and Rocket Dollar all do…

Equity Trust Company has been around for 40 years and has 33 years of experience as an SDIRA provider. It has $45 billion in invested assets and is a good overall SDIRA company that offers its investors a full spectrum of alternative investments. Equity Trust offers cryptocurrencies, of course, as well as foreign currencies, precious metals, tax lien certificates and more. 

IRA Financial offers everything Equity Trust does, but it has less experience. Still, it has a very important perk for people just venturing out into the world of SDIRA investing. SDIRAs can attract the attention of the IRS, but IRA Financial offers audit protection for its investors and a low custodian fee to boot.

Alto is a newcomer to the world of SDIRAs. It was founded back in 2018. But its high-tech platform and low fees make it attractive to people looking for an easy entry into their SDIRA investing experience.

Finally, Rocket Dollar is another newcomer at about 5 years old. But it’s already built a considerable niche in the SDIRA industry. It offers a full spectrum of alternative investment opportunities for your SDIRA.

While its setup fees are higher than those of its peers, its monthly fees are lower – just $15 per month. Its fees also don’t scale with the size of your portfolio, so if you have a large portfolio, this is definitely one to look at.

Keep in mind that these are just broad overviews and you will need to do more research to find the SDIRA custodian that’s best for you.

The process of actually buying cryptocurrency is a little complicated at first, and there are several details you should be aware of…

How you buy crypto in your SDIRA will vary from custodian to custodian, but, generally, it will go something like this…

First, establish an SDIRA. Then, you’ll need to form and register an LLC owned entirely by the IRA. Income and expenses related to the crypto will flow through the LLC and IRA per IRS requirements.

Then, using the funds from the IRA, the LLC will open a business checking account, also called a checkbook IRA. The checkbook puts you in full control of your account’s transactions, such as writing checks and wiring funds. The IRA LLC’s business checking account will be only for investing in digital assets or any other alternative assets allowed through your custodian.

Finally, open an account on a crypto exchange, like Coinbase or Kraken, in the name (and using the tax number) of the IRA LLC. From there, you can buy crypto with the LLC checking account and it will be stored in your SDIRA.

Also, keep in mind that you will need to do your own due diligence with a self-directed IRA. The custodian may hold the account for you, but it cannot give you any financial advice. You’re entirely on your own there unless you have a personal financial advisor.

Your custodian also will not usually evaluate the quality or legitimacy of investments in SDIRAs, so you’re on your own there as well.

So we recommend you have a financial advisor here. This is a complicated process that involves dealing with a lot of forms and account types you may not be familiar with. What’s more, it will have you dealing directly with IRS regulations – and most custodians won’t have your back if you make a mistake. So having someone around to make sure you’ve dotted your i’s and crossed your t’s will be invaluable…

There will also be many fees associated with SDIRAs that you won’t see in other retirement accounts. In all, they have a complicated fee structure that usually includes a one-time establishment fee, a first-year annual fee, annual renewal fees and fees for investment bill paying.

Those costs will add up and could potentially bite into your returns. So we recommend you speak to your financial advisor to handle many of the particulars of your SDIRA.

Yes, it takes a bit of planning. As with most situations involving the IRS, there are hoops to jump through. So you’ll certainly want to have a good financial advisor at your disposal.

But remember…

Cathie Wood believes Bitcoin is headed for $1 million. The Winklevoss twins are a bit more conservative, estimating it’s headed for $500,000. They say we could see it by 2030.

And that’s just Bitcoin – I haven’t even mentioned Ethereum or the other big-name cryptocurrencies. And they’re just the beginning. I’ve found two killer cryptos whose potential gains could make the gains of Bitcoin and Ethereum look tiny by comparison…

In other words, a little bit of effort now could have the power to transform your retirement in the next few years. The juice may certainly be worth the squeeze – and then some.

And that’s the beauty of a self-directed IRA… it’s in your hands completely. There are no legacy investment firms telling you what you’re smart enough to invest in. Your financial future will be put back in your hands.

Don’t let a faceless corporation or Wall Street “expert” tell you what you can and can’t hold in your retirement account.

It’s your money, so invest it how you see fit.