Financial Trust Company Enables Self-Directed Cryptocurrency Investments in IRA

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IRA Financial Trust is now enabling self-directed IRA account holders to purchase Bitcoin and other cryptocurrencies using their IRA and solo 401k plans. The company is a custodian of these plans, where customers may make pre-tax investments to save for their retirement.

The company’s Crypto IRA platform gives members the ability to buy, sell or hold digital assets while generating tax-deferred or tax-free gains, when selecting a Roth IRA. According to Adam Bergman, President of the IRA Financial Trust Company, “Unlike some other IRA custodians, IRA Financial has embraced cryptocurrencies which means more business for us.”

The company has partnered with IRA Financial Group to enable a Bitcoin IRA that gives users total control over their private keys. Bitcoin and other cryptocurrencies may then be held on exchanges or in digital wallets, including hardware wallets.

IRA Financial Group provides self-directed retirement plans to thousands of clients who want to have greater control over their own retirement investments,  including real estate without custodian consent. The IRA Financial Trust Company is a self-directed IRA custodian, founded by Adam Bergman, who is also a partner in the IRA Financial Group. Bergman has written seven books on self-directed retirement plans, including, How to use Retirement Funds to Purchase Cryptocurrencies, The Checkbook IRA, Going Solo, Turning Retirement Funds into Start-Up Dreams, Solo 401(k) Plan in a Nutshell, Self-Directed IRA in a Nutshell, and in God We Trust in Roth We Prosper.

Self-directed IRAs are nothing new. They are provided by a number of financial institutions in the United States to allow for alternative retirement savings investments. Some examples of alternative investments include private mortgages, real estate, private company stock, oil and gas limited partnerships, precious metals, horses and intellectual property. Because of their complexity, the SEC has issued a public notice against an increased risk of fraud in 2011.

According to the SEC, state securities regulators have investigated a number of cases where self-directed IRAs were used to provide a veil of legitimacy to otherwise fraudulent schemes. Custodians and trustees for self-directed IRAs generally do not evaluate the quality or legitimacy of such investments. That is not to say that all self-directed IRAs are scams, or that one should be skeptical of every single type of investment. If used correctly, this model can provide investors with the freedom to make their own retirement investment decisions in a way that can also reduce costs. As with all investments, it’s important to do your own research, and to consult with a financial advisor when necessary.

Before cryptocurrencies gained popularity, the precious metals industry was offering gold, silver and other metals as alternative investments. Companies would serve as the custodians of the physical metals backing each investment and customers could put their money into these relatively stable stores of value, pre-tax. Now that companies like IRA Financial Trust have opened up the doors to digital asset investments, more opportunities exist for people thinking about their futures. While the IRS and other regulatory bodies are still trying to determine how to classify crypto-assets, this may be a way to protect at least a portion of your investment from being over-taxed.

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