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The Private Key Control Self-Directed IRA LLC

Private Key Control
3 Minute Read

IRA Financial has helped over a thousand clients invest in cryptocurrencies in just the last year. We have authored numerous articles on Forbes on the taxation of cryptocurrencies.

Our Private Key Self-Directed IRA LLC solution will allow you to have total control over your cryptos, either via an exchange, such as Coinbase, or through a digital or hard wallet that you hold and control. You, as manager of the LLC, will have total control over your crypto wallet and be the sole person in control of the wallet’s private key. Some IRA custodians require that you use their brokers to buy and sell your cryptos and they arrange for the safekeeping of the cryptocurrencies, including holding the private key and the cryptocurrencies themselves. The first thing you hear about when investing in cryptocurrencies is to never give away your private key as it is like giving away your ATM pin code or keys to your home. Nevertheless, some IRA custodians are requiring IRA investors to do so. IRA Financial Group believes there is a better and safer way to allow its clients to invest in cryptocurrencies – the Private Key Control Self-Directed IRA LLC.

How to Use a Private Key Control Self-Directed IRA LLC to Invest in Cryptocurrency

Working with IRA Financial Group to purchase cryptocurrencies, such as Bitcoins, Ethereum, Ethereum Classic, or Litecoins, with a Self-Directed IRA is quick and easy.

1. Establish a Self-Directed IRA account with IRA Financial Group.

2. Rollover retirement funds, cash or in-kind, tax-free to new Self-Directed IRA account.

3. The IRA assets will then be transferred to the LLC tax-free in exchange for 100% interest in the newly established IRA LLC.

4. 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.

5. 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.

6. A cryptocurrency account would 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.

7. 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 hard wallet you control and where you hold the private key.

8. 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.

Why Choose IRA Financial Group For Your Cryptocurrency Self-Directed IRA Investments

  • No commissions.
  • No broker fees or requirement to go through an IRA custodian or broker to buy or sell cryptocurrencies.
  • Buy, sell, exchange, and sell bitcoins or any cryptocurrency of your choice through an exchange anytime you want.
  • Use any cryptocurrency exchange of your choice.
  • As manager of the IRA LLC, open your own cryptocurrency exchange and buy, sell, transfer, or exchange any cryptocurrencies when you want.
  • Hold your own digital or hard wallet with your IRA cryptocurrencies – do not give up control of your private key.
  • Control Your Own Wallet & Private Key: With IRA Financial Group cryptocurrency Self-Directed IRA structure, you will have total control over your crypto wallet so you will have control over the cryptos and the private as well as public address associated with the wallet. You will not have to rely on an IRA custodian or broker to control your cryptos and you will be free to buy, sell, exchange, or transfer the cryptos anytime you wish either via an exchange or a wallet. Buy and sell cryptocurrencies on your own with total control and security with IRA Financial Group’s Self-Directed IRA cryptocurrency solution.
  • Flat annual IRA custodian fees – no transaction fees or annual valuation fees.
  • Work with experts – we have helped over a thousand retirement account investors in just the last year invest in cryptocurrencies.

At the time of editing this article (6/24/2019), Bitcoin is in the midst of a resurgence as it passes $11,000, the highest price for Bitcoin in 15 months. Cryptocurrency, such as Bitcoin and Litecoin, are gaining attention once again after Facebook revealed the details of its very own cryptocurrency, Libra. Although we are beginning to learn the details of Facebook’s cryto coin, Libra is not set to launch until 2020, and will not be determined a success until a couple years after its launch.

Even so, many retirement investors have been inspired by this news and are re-gaining trust in Cryptocurrency. While you may want to jump back on the crypto bandwagon, it’s important to note that cryptocurrency investments are risky and highly volatile. Any investor interested in learning more about investing in cryptocurrencies should do their diligence and proceed with caution. You can get started by learning more about virtual currency and its blockchain technology.

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