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Rolling over a Bitcoin IRA, Using a Cold Wallet and more | Client Q&A

AdMail Podcast
3 Minute Read

Last Updated on March 23, 2021

In this week’s episode, IRA Financial’s Adam Bergman Esq. answers questions relating to our recent webinar about Bitcoin including: using a cold wallet with an IRA, Gemini fees, and rolling over a Bitcoin IRA.




Question 1: Can I hold cryptos in my IRA in a cold wallet?

When you invest in cryptos, you have two ways to hold them – in a hot wallet or cold wallet. Hot wallets are generally connected to the Internet, usually held on an exchange. On the other hand, cold wallets are offline. You can hold them locally on your computer, a thumb-drive or similar device.

There’s more protection when you hold your cryptos on an Exchange, as they are regulated. However, if you have a large sum of cryptos, you may not be comfortable keeping them there. You can leave some on the exchange to use for trading, while storing the rest on a secure cold wallet, in which only you can access. Obviously, it’s up to you to keep track of the “wallet” along with the password.

Although the IRS does not allow you to hold precious metals personally (even in a safe deposit box), there is no such rules for retirement plans. Therefore, you are permitted to store your cryptos, even if you own them in a Self-Directed IRA.

Question 2: How much does Gemini charge for a Self-Directed IRA LLC account investing in Bitcoin? 1%?

The way it works with Gemini is that you can use your IRA to invest, directly in the name of the IRA. There are no third-party brokers and you don’t even need an LLC to invest. IRA Financial’s partnership with Gemini has become quite popular for retirement investors wanting to get a piece of the crypto market.

Depending on the type of fee schedule you are on (Web, Mobile, Active Trader, API, etc.), the amount you will pay varies. It can be just 0.35% for example, if you are an active trader, who is trading less than $500,000 per month. The percentage drops the more you trade. If you are on a web-based schedule, and trade less than $200, the fees range from 99 cents to $2.99. However, once you go over that $200, you are charged 1.49% per transaction. Check out Gemini’s fee schedule here.

Question 3: Can your company rollover an existing Bitcoin IRA account?

Yes, if you have an existing Bitcoin IRA, you can bring those funds here. You first need to set up a Gemini account, if you don’t already have one. You can then roll over your funds to the new account. With IRA Financial, you only play a flat fee of $300 to us to set up your plan. Unlike other providers, we do not charge account valuation or transaction fees. As we mentioned, you also do not need to set up an LLC.

If you do choose to go with Gemini, you should be aware that they do not offer all alt coins, like Polkadot or Ripple. However, if your interest is in Bitcoin, Ethereum or many other popular cryptos, Gemini is the place to be. Learn more about how our Bitcoin IRA works!

AdMail – Keep it Coming

We hope you enjoyed the latest episode of AdMail. Mr. Bergman will continue to respond to questions each week so long there is a demand for them! If you have any questions for him, email him at abergman@irafinancial.com.

As with his other podcasts, you can check out AdMail on SoundCloud. Be sure to subscribe to know when the next one pops up! Thanks for listening and have a great day, Self-Directed Nation!

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