What is BitcoinIRA?
BitcoinIRA is an IRA platform specializing in Bitcoin and offers over 60 cryptocurrencies in total.
It lets you set up a 401k or a traditional or Roth IRA to purchase Bitcoin through.
Is BitcoinIRA Safe?
Bitcoin IRA has an exclusive relationship with BitGo to provide the following security features:
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BitGo Custody: BitcoinIRA uses BitGo’s custodian services, which leverage offline multi-signature cold storage wallets to store most coins available on the platform. These wallets are held in bank-grade vaults and are insured up to $700,000,000(1).
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SOC 2 Certification: BitGo has achieved the rigorous SOC 2 Type 2 security certification, indicative of its commitment to meeting high standards for security and data protection(2).
Key Takeaways
- BitcoinIRA is legit: it's performed over $2 billion in transactions and has been in business for years with over 170k users.
- BitcoinIRA is safe: the platform uses BitGo custody to hold assets, a trusted custodian with large insurance reserves and years of experience.
- BitcoinIRA lets you use retirement funds, such as an IRA or 401k to purchase Bitcoin.
Is BitcoinIRA Legit?
BitcoinIRA is a legitimate platform. It partners with a regulated state-chartered trust company to offer its IRAs.
Lastly, it has performed over $2 billion in retirement transactions for its more than 170,000 users(3).
BitcoinIRA Fees
BitcoinIRA employs a fee system depending on account type and the assets you’re purchasing.
Other associated fees include:
| Fee Type | Amount |
|---|---|
| Domestic Outgoing Wire | $35 |
| International Wire | $50 |
| Checks | $35 |
| Cashiers Checks | $50 |
| ACH | $35 |
| Overnight Mail | $35 |
| Roth Conversion/Recharacterization | $50 |
| Stop Payment, Return Check/Wire | $50 |
| Outgoing In-Kind Transfer | 1% |
| In-Kind Distribution | 1% |
Supported Countries
BitcoinIRA currently only supports users from the USA.
Withdrawal Limits
BitcoinIRA’s limits focus primarily on withdrawals.
As it’s an IRA, standard IRS penalties will apply. This includes a 10% penalty for individuals under the age of 59 1/2 who take an early withdrawal.
Pros and Cons
When considering the pros and cons of BitcoinIRA, I think it is most helpful to compare it to buying and holding Bitcoin yourself (as opposed to holding it in an IRA or 401k).
| Factor | BitcoinIRA | Personal Holding |
|---|---|---|
| Flexibility and Control | Your Bitcoin is stored under the IRA structure, with potential restrictions on buying, selling, or early withdrawals. | Complete flexibility to sell, buy, or exchange your Bitcoin at will. |
| Tax Benefits | Offers tax benefits, with either tax-free contributions (traditional IRA) or withdrawals (Roth IRA). | Subject to capital gains tax on any profits from sale or exchange. |
| Security | Platform provides security measures and insurance for most assets they custody. | Security is your responsibility. Holding private keys gives you full control, but also the risk of mismanagement. |
| Costs | High associated fees, including setup, buy/sell, and security fees. | Potential one-time fees for buying or selling. No recurring fees. |
| Liquidity | Structured for retirement; penalties for early access. | Higher liquidity; access your Bitcoin whenever required. |
| Complexity | Most processes are managed by the platform; hands-off approach. | Requires understanding of how to buy, transfer, and securely store Bitcoin. |
Conclusion
BitcoinIRA presents a unique and secure avenue for individuals looking to integrate cryptocurrency into their retirement planning.
While it offers distinct advantages, potential users need to understand its fee structure and limitations before committing.
BuyBitcoinWorldWide writers are subject-matter experts and base their articles on firsthand information, like interviews with experts, white papers or original studies and experience. We also use trusted research and studies from other well-known sources. You can learn more about our editorial guidelines.
- BitGo - BitGo Secures Over $700M of Cold Storage Insurance Capacity, https://www.bitgo.com/newsroom/press-releases/bitgo-secures-over-700-million-of-cold-storage-insurance-capacity/
- Imperva - SOC 2 Compliance, https://www.imperva.com/learn/data-security/soc-2-compliance/
- Associated Press - Bitcoin IRA™ Surpasses 100,000 Users As Bitcoin Crosses The $50,000 Mark, https://apnews.com/article/technology-business-metal-markets-cryptocurrency-financial-planning-23d0cc07f5870ec835491df8e03f006a
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