IRA Financial Group, provider of self-directed IRA LLC and Solo 401(k) Plans, has announced the introduction of the Bitcoin self-directed IRA LLC solution with checkbook control. IRA Financial Group’s Bitcoin IRA solution with checkbook control will allow retirement account investors to buy, sell, or hold bitcoin and other digital assets and generate tax-deferred or tax-free gains, in the case of a Roth IRA directly from the IRA LLC bank.
Adam Bergman, a partner with the IRA Financial Group, commented: “Cryptocurrency investments, such as Bitcoins, have become a popular investment diversification option for many of our self-directed IRA investors in 2017. The great thing about using retirement funds to invest in cryptocurrency, is that if an individual made the investment with personal funds, there would be short-term or long-term capital gains on any gains whereas no tax would be imposed on the transaction if retirement funds were used,”
On March 25th 2014, the IRS issued Notice 2014-21, which set forth the IRS position on the taxation of bitcoin. According to the IRS, ‘Virtual currency is treated as property for U.S. federal tax purposes. General tax principles that apply to property transactions apply to transactions using virtual currency.’ By treating bitcoin as property and not currency, the IRS is providing a potential boost to investors, but it also imposing extensive record-keeping rules—and significant taxes—on its use. With IRA Financial Group’s self-directed IRA Bitcoin solution, traditional IRA or Roth IRA funds can be used to buy bitcoin without tax.
The primary advantage of using a Self-Directed IRA LLC to make bitcoin investments is that all income and gains associated with the IRA investment grow tax-deferred or tax-free in the case of a Roth IRA. IRA Financial Group’s Bitcoin IRA LLC for cryptocurrency investors is an IRS approved structure that allows one to use their retirement funds to make Bitcoin and other investments tax-free and without custodian consent.