Many experts are calling a Cryptocurrency Roth IRA from ITrust Captial the very best tax shelter in the world. In this article and video get a behind the curtain look at this taz shelter. Click Button to Play the Video and keep in mind the monthly fee has now been waved.
From a long-term strategic planning perspective, I have always felt the place to start is with a ROTH IRA. Today without question the only IRA service we recommend is ITrust Capital.
In this article we are going to review, I Trust Capital Cryptocurrency retirement account. We are going to cover the affordability, what they offer, different ways to fund your account and the security of the platform.
This is the IRA program Dawn and I personally use for our IRA’s and we are proud to be an affiliate for ITrust Captial. Back in 2017 or so, I was looking for a crypto retirement account, and there were not many options back then.
At that time I felt the best overall IRA was Bitcoin IRA. But one thing I didn’t like was the high setup and maintenance fees, but we went with them anyway until a few months ago when we discovered ITrust Capital.
So while it’s not uncommon to pay up to 15% per transaction to trade crypto even through IRA accounts.
When I first discovered ITrust Capital, they charged just 1% per transaction, which is cheaper than Coinbase and Gemini and clients also paid a $29.95 monthly service fee which I thought was reasonable.
I was looking at this and I thought, Hey, it’s not free, but it’s the best value in the crypto IRA space. 1% fee, $30 a month. But on November 15th, 2021, I trust capital announced that there is no more monthly fee, $0 a month. This was a huge game changer.
I’m not sure how other platforms will be able to compete.
Eventually they will have to readjust their fees. With ITrust Capital there is no more monthly fee, $0 a month. It already was the most affordable at $30 a month. Now it is the most affordable by far and with their 1% trade fee, which again is cheaper than Coinbase and cheaper than Gemini the simply offer the best value in the crypto IRA space.
They also allow gold and silver investments which I am also a fan of. So, this platform has many different coin options. And this was another thing that brought me to I trust capital.
Back then I knew I wanted to get Bitcoin, but I thought down the line, I’ll probably want to add other coins or all coins to my portfolio, especially Ethereum. Little did I know how my financial mind was going to shift.
So ITrust Captial a wide selection of cryptocurrencies. Since we have been using the platform, they have been adding more assets every month. They even have Sheba.
Am I gonna put Sheba in my retirement account? Certainly not, but I do have a small bag in my high-risk high potential stack. They recently announced that the avalanche coin was coming soon and as already mentioned they have added gold and silver.
So the only real question was do I want a traditional IRA or a Roth IRA? As you probably know with a traditional IRA you do not pay the taxes up front. Instead, you pay the taxes when I withdraw from the account after the age, 59 and a half, and with a Roth IRA, you do pay the taxes up front. Then when you withdraw after the age 59 and a half, there are no more taxes, because you have already paid them.
Your cryptocurrency can grow tax free and you get to withdraw without paying any taxes.
The obvious answer for most young adults is a Roth IRA because you, along with many others, believe that cryptocurrency will continue to do very well over the next 20 to 30 years.
So most people who find themselves thinking about opening a cryptocurrency IRA would probably rather pay the taxes up front and get to keep all of those gains after the age 59 and a half.
So for most people that read this article, depending on your age, a traditional IRA is probably not the answer. So most cryptocurrency enthusiast go with a Roth IRA, but for both of these platforms, a huge benefit is that you can trade within these platforms without creating a taxable event. So let’s say you have a traditional IRA. You can trade within the platform crypto for crypto. And then after the age, 59 and a half, when you withdraw, then you will pay the tax or with a Roth you have already paid the taxes. You can trade with the account tax free.
And then when we withdraw after the age 59 and a half, you get to keep all of those profits. Because if you trade crypto for crypto out of a IRA, every time you trade, it is a taxable event in the United States.
And probably the most common question I receive about Roth IRAs is what if you need the money early? Well, there are actually different ways how you can take out the money early penalty free. So with a Roth IRA to begin with the original contribution can be taken as a distribution at any time because you already paid taxes on the initial contribution.
And then also there are exceptions where you can take out the money early penalty free if you really need it. People always say, well, what if I really need the money? Well, if you really need the money, it is very likely. You will qualify for one of the exceptions for you can withdraw from a Roth penalty free for unreimbursed medical expenses, health insurance premiums, while unemployed, permanent disabilities, certain higher education expenses, inheriting an IRA, buying building, or rebuilding a home and other important, legit reasons.
Below is a link for the official documentation from the IRS outlying what qualifies for an early exception.
IRS Penalty Exceptions – https://www.irs.gov/retirement-plans
Before you turn 59 and a half set up a plan that is best suited to those who need a steady stream of pre-retirement income, perhaps to compensate for a career that ended sooner than anticipated.
If you had a career that ended earlier than anticipated, or maybe you’re retiring earlier, there is a way you can take out the funds from the account penalty free before the age, 59 and a half. If this is something you’d like to do, make sure to speak with your accountant.
And if by the end of this article, you do decide you want to use, ITrust Capital. I will leave a link down below. And with that link, you will get a free $100 Bitcoin bonus when funding your account. Awesome right? $100 in free bitcoin just for funding your IRA account.
So I will leave that link down below.
THE 3 BEST WAYS TO FUND A CRYPTO IRA
And in terms of funding the account, there are three ways. The first way to fund the account is to transferring an existing IRA, that is what Dawn and I originally did. So let’s say you have an IRA already, a non crypto IRA. You can transfer it over existing IRAs can be transferred to a new IRA without creating a taxable event or a penalty. And if you already have a Bitcoin or crypto IRA through a different provider, you can likely do a transfer as well.
So if you have a non crypto IRA, you can transfer it over. And if you already have a current Bitcoin or crypto IRA, it is very likely that you can do a transfer.
So this is the first way. And for specific instructions, once you create your, ITrust Capital account, the team will email you funding instructions, and their support staff is awesome.
The second way to fund your account is by rolling over an employer plan. So let’s say you already have a plan with your company or your employer, a 401k 4 0 3 B TSP 4 57 or a plan plans from previous employers can be rolled over into an IRA and plans from current employers may be able to be rolled over into an IRA. So if you had a previous employer, it can be rolled over your current employer. It will depend on the specific plan.
And the third way to fund your ITrurst Capital account with new funds. This is the easiest way, and a common question I get is can you transfer crypto into the account? The answer is no, you can’t. That is not to say you couldn’t cash out your cryptocurrency and covert it to cash, and then send that cash to ITrust Capital. I have several crypto friends that have done this.
The IRS only allows IRAs to be funded with U S D. This is not a rule set out by I trust capital. This is a rule by the IRS. So you need to fund it with us dollars, or you need to transfer it over from an already existing plan. And when it comes to Roth IRA, there are contribution limits, $6,000. If you are under the age, 50 years old that’s per year and $7,000 per year, if you are over 50 years old, and in order to do the maximum contribution of 6,000 per year, it will depend on your income in order to contribute the max 6,000 per year, you need to make under $125,000 per year.
The more you make it decreases, eventually it gets to a point where you can no longer contribute. So if you make over $140,000 a year, the maximum contribution to a Roth IRA is $0, but this doesn’t make any sense because there are many wealthy people in the United States that contribute to a Roth IRA.
And the way they do it is through what’s known as a backdoor Roth IRA. I know many people reading this earn more than $140,000 a year, and you still want to contribute to a Roth IRA, like many people do, you can it through a backdoor Roth IRA. And if this is something that you want to do, make sure to speak to your accountant.
So we covered the price, we covered the offerings and we covered the ways to fund the account. Now let’s cover security of the platform. I trust capital uses two institutional grade custodians to secure the crypto. They use curb, which is an institutional grade wallet, which also is recently acquired by PayPal. And they also use Coin Base custody. One of the leaders, when it comes to securing digital assets, and these crypto funds are held offline in cold storage.
And along with, these institutional grade, custodians comes insurance. Coinbase custody offers a 320 million insurance policy and curb offers a $50 million insurance policy.
There is an FAQ page on I trust capital, which I will either link for down below if you want to go through and learn more. It is basically standard info, no surprises.
There may be more questions you have even after this article. I hope most of them will be answered and you are starting to get excited about a cryptocurrency IRA.
A very important question I should cover is, what is the minimum and maximum per account? The minimum to open an I trust account is 2,500 and there is no maximum.
So you can go through this FAQ page. If you have any other specific questions.
Don’t forget if you want to get started, use the link below and you will receive a hundred dollars in free Bitcoin when you fund the your account with the special link. Thank you for reading this article, and if you don’t have a cryptocurrency IRA is there any reason you shouldn’t open one now?
CLICK THIS SPECIAL LINK FOR $100 IN FREE BITCOIN WHEN YOU FUND YOUR IRA ACCOUT.