If you’ve chosen to invest in Bitcoin and are interested in the idea of opening an IRA account to store your Bitcoins in, simply continue reading to discover a step by step guide on investing in Bitcoin, using an IRA account!
In order to legally set up an IRA account, you’ll be required to fill out a few online forms, which will need to be processed and verified before your new IRA account is activated.
Arrange for funds to be transferred to your Bitcoin IRA account
In order to fund your account for the first time, you’ll have a few options. As an example, you can choose to shift funds from your 401k retirement plan or from a long-term savings account. across to your newly created Bitcoin IRA account.
Decide how often you’d like to purchase Bitcoin for your IRA retirement account
If you’re in you’re in your fifties or sixties and are looking to fast track your retirement savings, you may want to make bi-monthly contributions to your retirement account. Whereas if you’re in your twenties and thirties and have other priorities such as traveling the world and socializing on a regular basis with your friends, you might prefer to make monthly or quarterly contributions to your Bitcoin IRA account.
One of the distinct advantages of investing capital into an IRA account is that you’re in complete control of your account. So whether you foresee yourself making contributions to your account each month or you plan on making a handful of contributions to your account per year, you’ll be well within your rights.
Store your Bitcoin in a safe digital wallet
If your knowledge on Bitcoin is relatively sparse you may be unaware that you can’t store Bitcoin in a traditional bank account, so you’ll need to purchase a digital hardware wallet, in order to ensure that would be thieves, don’t try to steal your Bitcoins. If your knowledge on Bitcoin is limited, your smartest bet may be to hire a Bitcoin custodian who can set up a secure, digital wallet for you. Just make sure to ask your custodian to set up a hardware wallet over a paper wallet as they offer an extra level of security.
Make sure that your Bitcoin custodian sends regular transcripts of your purchases to the IRS
Your chosen custodian should also be able to handle all of your obligations to the IRS. As an example, it will be your custodian’s job to send transcripts of all of your investments to the IRS. While there is no need to pay tax payments to the IRS in the near future, when it comes time to withdraw funds from your IRA account in the future, the IRS will need to assess how much tax you’ll need to pay on the profits which you’ll claim on your investments.
So what are you waiting for? There’s no time like the present to start saving for your financial future.