Many companies give their employees retirement benefits. These benefits usually feature an IRA, or individual retirement account, to help them save for their golden years.
At some point, you’ve probably worked for an employer who offered this benefit. But did you know you can still get a self-directed IRA, even if you’re self-employed or ineligible for work benefits?
With a self-directed IRA, you usually have more flexibility in what features you use and what assets you invest in. And with some of the best cryptocurrency trading platforms, you can even make crypto a part of your retirement strategy.
Of course, the best ways to do this aren’t always obvious. There are many cryptocurrency platforms. There are even several financial firms offering crypto IRAs. How can you tell which platform and account are right for you?
This iTrustCapital review will attempt to help answer that question.
iTrustCapital IRA is a strong contender in the world of crypto IRAs. With several digital coins to choose from and flexible investment trading options, anyone can use the platform to set up an IRA that works for them.
To learn more about crypto IRAs in general and iTrustCapital in particular, keep reading.
iTrustCapital describes itself as the leading digital asset IRA trading platform. It allows users to buy and trade cryptocurrencies and physical gold and silver through their retirement accounts. Their investment platform is IRS-compliant and fairly full-featured, while still being simple enough for beginner investors to make sense of.
Financial information can be complicated, and investing in alternative assets like gold and cryptocurrencies can be daunting for many people. iTrustCapital makes alternative retirement investments accessible to everyone, regardless of financial background or technical skill level.
Besides providing a modern, user-friendly system, iTrustCapital offers excellent account security and asset protection. Through partnerships with organizations like Curv, Authy, and the Royal Canadian Mint, iTrustCapital ensures your account stays secure and your assets remain safe.
With iTrustCapital, you can buy and trade assets using one of three different types of IRAs: a Traditional IRA, a Roth IRA, or a SEP IRA.
iTrustCapital’s trading platform only supports eight of the most common cryptocurrencies. Although their platform is simple and straightforward, advanced investors might find it inadequate for their needs. However, for those who are new to crypto investing and want a simple solution, it can be a perfect fit.
Cryptocurrency Trading With iTrustCapital IRA
To open an IRA account with iTrustCapital, you will need to start by filling out an online application. This can be done in a matter of minutes, and they provide a convenient Getting Started guide to help you.
Once you submit your application, they should approve your account within three business days. Afterward, you will be able to fund your account and begin trading cryptocurrencies. There are three ways to fund an iTrustCapital IRA:
- Transfer an existing self-directed IRA, including other crypto IRAs
- Rollover an existing employer plan, if your current employer plan qualifies
- Contribute new funds by purchasing crypto or precious metals with USD
It’s worth noting here that you can only purchase crypto for your IRA using fiat USD currency. You can’t transfer external crypto holdings into your new IRA unless your existing crypto assets are part of a separate crypto IRA already.
Once you have your account set up and funded, you can buy and sell cryptocurrency through iTrustCapital’s online platform 24/7. Although it’s not as feature-rich as a dedicated crypto exchange would be, most retirement investors will find it sufficient for their needs.
Unlike some of its competitors, iTrustCapital doesn’t offer a cryptocurrency trading app for mobile devices. However, their full-featured website is mobile-responsive, so most users shouldn’t have any trouble accessing their account from their phone’s browser.
Is iTrustCapital Insured?
All iTrustCapital accounts are insured for up to $50 million by Curv, iTrustCapital’s insurance partner. This should be enough to help anyone feel confident entrusting iTrustCapital with their investments.
Any funds stored in your iTrustCapital account in USD are insured by the FDIC.
How Are My Assets Secured?
In addition to Curv’s excellent insurance, iTrustCapital utilizes several layers of security to keep your account and assets safe.
Assets purchased with an iTrustCapital IRA are stored in digital wallets by Curv. Curv provides institutional-grade wallets with multi-authentication protocols. They use industry-standard technology that’s also used for the military and banking sectors. After an independent audit of their digital wallet service, they became the first and only Multi-Party Computation solution to achieve SOC 2 Type II status.
iTrustCapital also requires account holders to use two-factor identification when they log in. This involves entering your email address and password, then entering a one-time login code that gets sent to you. Codes are delivered via SMS message, automated phone call, or the Authy app, available on iOS and Android.
Tax Benefits of an iTrustCapital Account
Crypto IRAs from iTrustCapital are identical to traditional IRAs in terms of the benefits they include. Trades you make within your iTrustCapital account are sheltered from taxation, with gains being either tax-deferred or tax-free depending on your account.
You can get either a Traditional IRA or a Roth IRA from iTrustCapital. A Traditional IRA can be funded with pretax dollars, and you’ll only be taxed once you begin taking money out. A Roth IRA is funded with post-tax dollars, but then you won’t have to pay taxes later on.
You can’t assume that either option is better than the other because there’s no way to predict what tax rates will be when you reach retirement age. The type of account you choose will come down to personal preference.
iTrustCapital Crypto Assets Supported
iTrustCapital lets you trade and invest using the following cryptocurrencies:
- Bitcoin (BTC)
- Ethereum (ETH)
- Polkadot (DOT)
- Bitcoin Cash (BCH)
- Litecoin (LTC)
- EOS (EOS)
- Stellar (XLM)
- XRP (XRP)
Although that may seem like a lot, keep in mind that there are thousands of cryptocurrencies available or in development, so having eight to invest in isn’t that significant. However, it’s still more than many crypto IRA platforms support.
iTrustCapital also allows you to invest in gold and silver, which are stored in the Royal Canadian Mint.
iTrustCapital has a transparent and simple fee structure. Their fees include the following:
- Monthly account cost: $29.95
- Cryptocurrency trades: 1% of investment value
- Physical gold purchases: $50 over spot per ounce
- Physical silver purchases: $2.50 over spot per ounce
iTrustCapital’s fees are very reasonable compared to some of its competitors. This makes their IRA a highly competitive and valuable service.
iTrustCapital provides its clients with live chat and telephone support.
Even if you aren’t a customer yet, you can send an instant message to iTrustCapital or schedule a time for them to call you. This means you can get any questions you may have answered directly before you commit to opening an account.
Pros & Cons of iTrustCapital
- Simple, straightforward platform—buy and sell assets in a few minutes
- Asset orders clear in under five minutes
- Place orders and monitor assets 24/7
- Live chat and phone support available
- Low, transparent fees
- No fees for storage or account setup
- Reasonable $2,500 account minimum
- Expert account setup assistance
- A somewhat limited number of cryptocurrencies available
- Lack of diversity for precious metals
- No mobile app available
- Does not offer investment advice
Frequently Asked Questions About iTrustCapital IRA
By now you can see that iTrustCapital provides a decent service with a strong IRA. If you still have lingering questions after reading this review, this FAQ section should address any concerns you may have:
Where Are Precious Metals Stored?
Gold and silver purchased through iTrustCapital are stored and guaranteed by the Royal Canadian Mint, which is owned by the Government of Canada.
Ownership of precious metals is managed via a secure blockchain distributed ledger, which is the same technology that powers cryptocurrencies.
Precious metal trades are placed through Kitco, a leader in precious metals trading.
When Can I Take My Funds Out of My IRA?
As with any other individual retirement account, you should only take out your funds once you reach the retirement age of 59 1/2. If you withdraw your funds early, you could face a 10% tax penalty in addition to having your assets taxed as income.
Does iTrustCapital Offer Investment Advice?
Your iTrustCapital account will include access to basic price tracking charts for different assets. Although simple, they can help you make investment decisions. They also provide a detailed knowledge center to help you make the most of your IRA. However, they do not offer one-on-one investment advice from financial advisors.
How Long Does It Take to Create and Fund an IRA?
A new IRA can be set up in 1-3 business days after you submit your application. The time it takes to fund your account and begin investing varies depending on the method you use to fund it. A direct contribution can take up to one week; an IRA transfer can take 1-2 weeks, and an employer plan rollover can take 3-4 weeks.
Can I Transfer Existing Assets or Rollover My Current IRA?
If you have an existing self-directed IRA or a crypto IRA from a different provider, you should have no trouble rolling over to an iTrustCapital account. In most cases, you shouldn’t have to liquidate your investments to move them, even if they’re crypto holdings.
If your IRA is currently provided by an employer retirement plan, there may be more limitations on how and whether you can roll over your account. You should contact the administrator for your retirement plan to find out if your IRA is eligible for rolling over to a self-directed crypto IRA.
Keep in mind that you cannot transfer existing crypto holdings into an IRA. This is because the IRS does not see crypto as a form of currency, but a form of property. If you have crypto that you want to invest into your IRA, you will have to liquidate them first and buy new crypto through iTrustCapital using USD.
Are There Minimum or Maximum Investment Limits?
There are no maximum investment limits, so you can invest as much as you like into your IRA. There is a minimum investment of $2,500 to open your account.
Keep in mind that there may be limits on how much you’re allowed to invest each year if you’re funding your IRA with pretax income.
Going Forward With iTrustCapital IRA
You may already take an interest in cryptocurrency trading. Or maybe you’re just trying to prepare for retirement. Either way, iTrustCapital is a great option for crypto IRAs.
iTrustCapital lets you diversify your portfolio with gold, silver, and several cryptocurrencies. Best of all, these investments can make you better prepared and less reliant on traditional fiat currency.
If you want to learn more about crypto, BitCompare.net has you covered. With dozens of in-depth articles and useful tools, we have all the resources you need to make the most of your investments. Check out more of our helpful reviews here.