CHARLOTTE, NC / ACCESSWIRE / April 1, 2021 / Can investors hold Bitcoin in a Self-Directed IRA? Recent headlines have seen volatile price swings for the cryptocurrency. For many, seeing Bitcoin eclipse $30,000 per coin and even $40,000 and above has changed the landscape. It is introduced the concept of cryptocurrency to a larger audience, which justifiably has many retirement investors wondering whether it is possible to use a tax-advantaged account like an IRA for investing in cryptocurrencies.
The most recent post at the American IRA blog goes into greater detail. First, the post highlights how the IRS prohibits certain types of assets from being held within an IRA. For example, a life insurance policy cannot be held within an IRA, nor can collectibles like art or fine wines. But because the IRS prohibits specific types of assets from use within a retirement account, it also leaves the door open for investing in many alternative asset classes.
The post quotes a Forbes article in which it is stressed that the question is not whether it is legal for an IRA to own bitcoin, but rather whether or not the IRS strictly prohibits it. But in 2014, the IRS laid out how Bitcoin would be treated for tax purposes: it would be treated as private property. This means that investors who make a profit on the sale of Bitcoin, for example, would owe taxes on it. Of course, owning property within an IRA is a different idea entirely.
The post goes into greater detail about the issue, specifying how Self-Directed IRAs work. "This post is important because it talks about what many people believe is the next great alternative asset class," says Jim Hitt, CEO of American IRA.
In the post, American IRA also details what is precisely meant by a "Bitcoin IRA," which is a term often thrown about as investors look for new ways to invest. As the post mentions, there is no type of IRA known as a "Bitcoin IRA," but it is more of a marketing term.
For more information, visit the post at www.AmericanIRA.com or call American IRA at 866-7500-IRA.
About:
American IRA, LLC was established in 2004 by Jim Hitt, CEO in Asheville, NC.
The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Jim Hitt and his team have grown the company to over $500 million in assets under administration by educating the public that their Self-Directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more.
As a Self-Directed IRA administrator, they are a neutral third party. They do not make any recommendations to any person or entity associated with investments of any type (including financial representatives, investment promoters or companies, or employees, agents or representatives associated with these firms). They are not responsible for and are not bound by any statements, representations, warranties, or agreements made by any such person or entity and do not provide any recommendation on the quality profitability or reputability of any investment, individual or company. The term "they" refers to American IRA, located in Asheville and Charlotte, NC.
SOURCE: American IRA, LLC
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