BitIRA claims to be the world’s most secure digital IRA, offering their clients a simple, streamlined process to invest their cryptocurrencies. But is that true? Is BitIRA honestly the right place to invest your crypto? Keep reading for our honest, in-depth review.
What is BitIRA?
Founded in 2017 by the Birch Gold Group, BitIRA serves as a digital platform for investing your cryptocurrencies, like Bitcoin, into your retirement account (IRA). They offer financial planning and help to keep your IRA as tax efficient as possible. BitIRA takes care of the paperwork, provides security, and explains the best options for your assets.
But How Secure Would My Investments Be?
Putting your financial future in someone else’s hands has the potential to be extremely risky, so how do you know your investments will be kept safe? Well if you invest with BitIRA, you can rest easy. BitIRA stores each of its investors IRAs on separate hard drives completely disconnected from the internet, these servers are kept under 24/7 surveillance, and if something does happen, BitIRA insures your IRA dollar to dollar, that means that if somehow someone manages to steal assets from you IRA BitIRA will fully reimburse you for every penny stolen.
Why do I Need a Digital IRA?
One of the best ways to make the most out of your crypto is to hold them in a self-directed IRA, (SDIRA). SDIRAs permit types of digital assets, like crypto, that a traditional IRA wouldn’t be able to. It’s also important to note that SDIRAs are not limited to just digital assets, the independent nature of an SDIRA gives you the option of investing in more traditional assets, such as stocks or bonds, with the additional benefit of the ability to invest in crypto. It’s also worth noting that as long as you hold your crypto in a digital IRA, taxes on earnings are delayed until you take a distribution. So whether BitIRA is the right choice for you or not, a digital IRA is something you should consider investing in.
What Separates BitIRA From the Competition?
Well for one, BitIRA currently sits at an A+ rating with the Better Business Bureau, although customer reviews of the company are hard to come by, all the reviews I could find were positive. BitIRA employs knowledgeable digital currency experts to help you purchase assets and diversify your portfolio, additionally, their team of dedicated IRA specialists provides full-service assistance in filling out the necessary paperwork. Once your account is set up they will also assist with any additional transactions you might want to make. BitIRA also gives you the option of keeping your crypto without forcing you to convert it to cash.
How Can I Make an Account?
Setting up an account with BitIRA certainly isn’t difficult, the staff at BitIRA handles most of the paperwork, and all you’ll probably have to do is sign a few papers and provide a few documents. Typically the account creation process takes between one to three weeks, which is certainly a long time, but BitIRA assures us that the time is necessary as their staff has to ensure your account is secure and ready to trade cryptocurrencies. According to the rules and regulations of their partnering service, BitIRA requires a minimum of $20,000 in your account, so if you still getting started on your IRA you may need to look elsewhere.
Pros & Cons of BitIRA
- Extremely secure facility and dollar to dollar insurance on your digital IRA
- Offers tax-free investing
- Expert staff to help with your transactions
- In-depth reports on account holdings
- Flexible accounts to help ensure a diverse portfolio
- Ability to keep your crypto without converting to cash
- The website does not disclose fees
- High minimum deposit
- Young company, not much of a detailed track record
Frequently Asked Questions About BitIRA
We’ve compiled some answers to questions we often get. Should you have any other questions, feel free to reach out below in the comments.
Are the Digital Currency IRAs Created by BitIRA IRS Compliant?
Yes, in 2014 the IRS declared cryptocurrencies such as Bitcoin are classified as personal property for taxation purposes. Although the tax agency did not specifically state that Bitcoin could be placed into an IRA, this ruling does make digital currency eligible to be placed in self-directed IRAs.
Is My Current Account Eligible to Rollover to A Digital Currency IRA?
If you have an IRA, yes, it will be eligible for a rollover to a digital currency IRA. You can roll over your existing IRA to another custodian as often as you like. The same rule applies to any type of IRA, such as traditional, Roth, SEP, or SIMPLE.
Are There Any Penalties to Sell The Cryptocurrencies in my IRA?
As long as you keep your IRA funds within the umbrella of your account, there are no penalties; you can move from any eligible asset to another, and as often as you would like. However, like any IRA, if you take any form of distribution before you are eligible to do so there would be penalties.
If I Take A Distribution, Can I Keep My Cryptocurrency?
Yes, once it’s distributed, if you want to keep the cryptocurrency instead of converting it to cash, BitIRAs partner custodian, Preferred Trust Company, will allow you to do so.
Can I Buy For a Bitcoin Roth IRA?
Yes, you have the option of creating any characterization of IRA that you would like for your cryptocurrency, just as you would for any other asset class. In addition to moving Bitcoin to a Roth IRA, you can also set up a Traditional IRA, SEP-IRA, and SIMPLE IRA.
Charges and Fees
BitIRA does not list their fees on their website, instead they ask that you contact them directly so you can get an accurate breakdown of the costs of an account. I did some digging and the most accurate cost breakdown I could find listed the annual charges as being somewhere between $300-$1000, while most customers report paying somewhere between $300 to $400 per year.