Can You Put Cryptocurrency in a Roth IRA?
Hey, everyone, Adam Bergman here, tax attorney, founder of IRA Financial. Yes, you can buy cryptos, Bitcoin, CRM, any crypto in any type of IRA or 401(k). Why? Because IRS Notice 2014-21 treats cryptocurrency as property. What that means is it’s treated like stock or real estate. And we know Internal Revenue Code Section 408 and 4975 state, there are only three things you cannot buy with an IRA, including a Roth IRA. And that is life insurance, collectibles like art, and any self-dealing, conflict of interest or prohibited transaction outlined in Code section 4975, which generally means you can’t do anything with your IRA and yourself, or a disqualified person, such as parent, child, spouse, daughter, law, son of law, or any entities 50% are more controlled by such persons. So, you can’t buy a house, but you can own real-estate.
Unlimited Cryptocurrencies in an IRA
There are unlimited types of cryptocurrencies you can put in an IRA. It’s super easy with our Gemini solution. You can buy cryptos in an IRA or 401K. Of course, a Roth IRA, which is what I owe all my cryptos in. Why do you want to own cryptos in a Roth IRA? Because if you can wait until you’re 59 and a half and the Roth has been opened at least five years, all crypto gains will be tax free. So, I’m 46 now and I can’t wait till I’m 59 and a half. Well, maybe I can wait, but from a crypto standpoint, I’m Super excited. Because imagine what the price of Bitcoin or Ethereum will be in the next 13 or 14 years. All of that will be tax free. I can pull out whatever I want in a Roth IRA without tax after 59 and a half. And guess what?
It’s going to be a lot. I can promise you, in 13 years, the price of Bitcoin, price of Ethereum, and most of the major cryptos will be a lot higher than they are today. So why not buy them in a Roth IRA? It meshes perfectly with a cryptocurrency. They are both long term investments, and a Roth IRA is the perfect long term investment vehicle for your crypto IRA.
Learn More: Crypto IRA Fees