CryptoBased IRA Okays Transfer of IRA and 401K to Cryptocurrency
CryptoBased IRA has announced that it has approved the transfer of IRA and 401K to Cryptocurrency– a solution for investors that are looking to hold cryptocurrencies like Litecoin, Ripple, Bitcoin, Bitcoin Cash, Ethereum Classic, Stellar, Zcash and Ethereum in a self directed IRA.
CryptoBased IRA is a platform that is responsible for connecting consumers to qualified digital wallets, custodian and cryptocurrency exchanges. The company has pioneered a safe and simple process for completing transactions and assisting fund transfers, and more importantly, the entire process is approved by the IRS.
The IRS Ruling
The IRS ruled that cryptocurrency has “an equivalent value in real currency.” For this reason, people around the world are using digital currency in order to purchase goods and/or services.
The IRS Virtual Currency Guidance: Notice 2014-21 has labeled Bitcoin as one of their examples of virtual currency and has declared bitcoin can be digitally traded between users and it can be exchanged into Euros, U.S. dollars and a variety of other virtual or real currencies.
Since people are exchanging Bitcoin for dollars or other currencies, this means that it can also be used in place of dollars or other currencies in order to make investments and to fund an IRA.
Why The Ruling Matters
For CryptoBased IRA individuals may want to transfer a portion of their IRA and 401K to for cryptocurrency for several reasons.
First, there’s the return of investment – to date, Bitcoin alone has more than 1000% gains and experts have said that this is only the start of the crypto revolution. Deciding to invest in cryptocurrency has a variety of benefits for retirement funds that normal asset classes aren’t able to match. Individuals are able to select from more options for their retirement than the normal investment choices that are currently on the market.
By investing a portion of your IRA or 401Kin a crypto based IRA, individuals can leverage tax-free personal property status thanks to the IRS Notice 2014-21 (cryptocurrencies are being treated as personal property). It is possible to retain the gains that are accrued tax-free until the individual chooses to take a distribution.
When any cryptocurrency is purchased inside an IRA account, and the individual chooses to sell them later for profit, they will be able to reinvest their capital into any IRA-eligible asset and will still be eligible for the tax-deferred benefits. This can include bonds, stocks, mutual funds, private equity, precious metals, certain types of real estate, and much more.
Individuals will also be able to protect part of their retirement from inflation. Unlike the easy-to-get- fiat money, Bitcoin actually allows individuals to hedge their savings against inflation.
Investing IRA and 401K to Cryptocurrency with CryptoBased IRA is hassle free, safe and secure. Individuals can invest their retirement money in a digital wallet, without having to worry. The company has partnered with the most secure forces on earth when it comes to cryptocurrency.
How To Transfer A Roth IRA, Traditional IRA, Or 401K Into A Crypto Based IRA
The steps for transferring Roth IRA, Traditional IRA, or 401K into a crypto basedIRA will mean the individual will need to transform a portion of their retirement account into a self-directed IRA. CryptoBased IRA is available to handle the entire process from start to finish, from the initial transfer to the purchase of the clients selected cryptocurrencies.