Buying Ethereum Using a Self-Directed IRA
Ethereum launched in 2015 and is a decentralized software platform that enables Smart Contacts and Distributed Applications (ĐApps) to be built and run without any downtime, fraud, control or interference from a third party. The applications on Ethereum are run on its platform-specific cryptographic token, Ether. Ether is like a vehicle for moving around on the Ethereum platform and is sought by developers looking to develop and run applications inside Ethereum. According to Ethereum, it can be used to codify, decentralize, secure and trade just about anything.
The IRA Difference
Experience You Need
IRA Financial Group has over a decade of experience helping investors self-direct their retirement accounts.
A Team You Can Trust
Our tax and ERISA professionals have helped over 12,000 clients invest $3 billion in alternative assets.
IFG founder Adam Bergman is a leading voice on self-directed retirement & has authored 7 books on self-directing.
Tell Us What You Need
Our team will work one-on-one with you to establish a Self-Directed IRA, Solo 401(k) or ROBS solution that fits your goals.
We Wrote The Book On Cryptocurrency and IRAs
Adam Bergman, founder of IRA Financial Group, has published 7 books on the topic of retirement plans and taxation, including the first published book on how to use retirement funds to purchase cryptocurrencies (How To Use Retirement Funds to Purchase Cryptocurrencies in a Nutshell). He is a frequent contributor to Forbes, has been quoted in over 250 major publications, and helped over 12,000 clients establish self-directed retirement plans to make alternative asset investments.
How to Use A Private Key Control
To Purchase Ethereum With An IRA
Establish a Self-Directed IRA Account.
Rollover retirement funds, cash or in-kind, tax-free to new Self-Directed IRA account.
The IRA assets will then be transferred to the LLC tax-free in exchange for 100% interest in the newly established IRA LLC.
You, as manager of the LLC, will open a bank account for the LLC at any local bank. IRA Financial Group will draft an LLC Operating Agreement identifying you as manager of the LLC and the IRA as the sole member.
You, as manager of the LLC, will then have checkbook control over all the assets/funds in the IRA LLC to make the cryptocurrency investment.
A cryptocurrency account wold be opened in the name of the IRA LLC. We have helped hundreds of clients establish cryptocurrency accounts for their self-directed IRA LLC at most of the popular cryptocurrency exchanges.
You, as manager of the LLC, will then wire the IRA LLC funds to the new cryptocurrency account opened at the exchange. The account will be opened in the name of the IRA LLC. As manager of the LLC you will have the option of keeping the cryptos on an exchange, such as Coinbase, or move them to a digital or hardwallet you control and where you hold the private key.
Since the LLC is owned 100% by an IRA, it will be treated as a disregarded entity for tax purposes. No Federal income tax return is required to be filed and all income and gains from the cryptocurrency investment will flow back to the IRA without tax.
“What about your IRA, including rollover IRA? You need to look at state law, advises tax attorney Adam Bergman of New York’s IRA Financial Group.”
“Adam Bergman…gets several calls a day from clients like McDermott looking to invest their retirement funds in real estate. ‘Our average client has retirement accounts of about $150,000 and is looking to buy one or two properties.'”
“Jeff Brown…transferred roughly $50,000 from his workplace 401(k) to purchase homes to fix up and sell…He uses a self-directed IRA that he set up through IRA Financial Group in Miami Beach.”