New consumer interest in bitcoin is trickling up into traditional retirement savings products and tax-advantaged vehicles like Individual Retirement Accounts (IRAs).
But while a new phenomenon, cryptocurrency IRAs are no different than IRAs invested in more traditional options like stocks and bonds. Holders of IRAs can deduct contributions from their income tax every year until the commencement of disbursements, currently at 59.5 years old in the US.
However, while there is no legal difference in an IRA account’s status based on the investment, most popular IRA providers only allow pre-approved investments, not more unusual options like cryptocurrencies or private equity and property.
According to data from Greene IRA, 38% of Americans use IRAs as a type of retirement savings.
Currently, the firm BitcoinIRA is the only option for investors who wish to hold cryptocurrencies in their IRAs directly, using Kingdom Trust and Palo Alto-based BitGo for storage. BitcoinIRA took its first accounts in June 2016, and just recently began offering ethereum IRAs as well. (The firm even boasts former US Mint director Ed Moy as an advisor).
Investors with 401ks through their employers can transfer those funds into such IRAs under certain circumstances.
Damon Smedley, a BitcoinIRA
Read more ... source: CoinDesk
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