5 FAQs new crypto users have about using a Bitcoin IRA custodian

If you are wanting to get into the world of investing in cryptocurrency and think that you might be best served by investing in crypto to start saving for your retirement, then you may very well want to put money into a Bitcoin IRA. 

Bitcoin IRA accounts are a new form of retirement investing that harvests the incredible power and wealth behind the world’s leading cryptocurrency, Bitcoin.

If you have some questions about utilizing a Bitcoin IRA custodian, do not worry, you are not alone! In fact, we have gone through to ask, and answer, the 5 most frequently asked questions regarding Bitcoin IRAs.

What are the fees related to opening a Bitcoin IRA?

When it comes to the fees related to opening a Bitcoin IRA, there is a one-time service fee that will be charged to your account with your initial investment. The amount of that fee relates directly to the size of your investment.

Is Bitcoin the only cryptocurrency that you can use to invest in an IRA?

 While Bitcoin is the most valuable cryptocurrency in terms of price per coin and market cap, many other types of coins are quite valuable and also have quite a lot of room to grow over time. Overall, the most common forms of crypto that are available through IRAs include Bitcoin, Ethereum, Ripple, Litecoin, Bitcoin Cash, Ethereum Classic, Stellar Lumens, Zcash, and Digital Gold.

What kinds of retirement accounts can be rolled over into a Bitcoin IRA?

There are many different funds that you can roll over into a Bitcoin IRA. This is for people who are especially bullish on crypto and want to push as much of their money into it as possible. For those people, they can take funds from existing IRA accounts, SEP IRA, Simples IRA, Roth IRA, 403b, or their 401K and roll them over into a self-directed Bitcoin IRA account! 

Can I spend my crypto from my new IRA account?

This is a very important thing to keep in mind, though Bitcoin IRA’s are not like traditional IRA accounts in many ways, they are similar to them in the sense that the funds inside cannot be withdrawn until the account owner is 59 ½ years of age without the owner accruing major tax penalties.

For that reason, these kinds of accounts should only be opened by people who are comfortable with the idea of investing in Bitcoin and other cryptocurrencies for the long haul. 

With that in mind, it is important to remember that you can sell your funds as long as it is used to invest in different assets or in another IRA account that you own. 

Can I transfer Bitcoin that I already own into my Bitcoin IRA?

At this current time, people are not able to transfer their current crypto holdings into a Bitcoin IRA. The reason for this is because the IRS currently requires that buying into crypto-based IRA be done with United States dollars. However, as the ecosystem around crypto continues to expand and evolve, there is a strong chance that this will change in the future!