So you’ve decided you are going to add some Bitcoin exposure to your retirement account, but now you’re trying to find the best bitcoin IRA on the market. There are various Bitcoin and crypto IRAs out there, but how do you know which is the best bitcoin IRA? We will do a deep dive into our favorite of them all for many reasons: Alto IRA. Check out how you can invest in cryptocurrency while enjoying the tax advantages of a retirement account, and why we believe Alto IRA is the best bitcoin IRA available.
First, What Is a Bitcoin IRA?
A fair starting point! A Bitcoin IRA is a self-directed Individual Retirement Account that allows you to have exposure to Bitcoin. You can fund your account with traditional retirement contributions, including rollovers from 401(k)s and IRAs.
Just like most investment accounts, the value of your investments will fluctuate with market conditions. It’s important to note that Bitcoin is highly volatile and subject to market risk. We are also NOT financial advisors, so do your own research on the risk involved with investing in Bitcoin.
What are the Tax Advantages of a Bitcoin IRA
Bitcoin IRAs can help you reduce your tax bill and are a great investment vehicle if you are looking to build long term exposure to Bitcoin, while enjoying the various tax benefits of an IRA. Currently, the IRS treats Bitcoin capital gains and losses as property (this could change depending on when you are reading this article). When you spend, trade, or sell your crypto OUTSIDE of a Bitcoin IRA, you will be subject to capital gains tax on any profit you are recognizing.
In a traditional Bitcoin IRA, your contributions are most often tax deductible. This also means Bitcoin held in your IRA is not subject to Capital Gains Tax or Income Tax, which allows you to reduce your tax bill. You will not have to pay tax on your Bitcoin gains until you withdraw your funds from your Bitcoin IRA (which will be once you reach the qualified age which is currently set by the IRS at 59 ½ years old.
Disclaimer: We are not financial advisors nor tax professionals, and we are not providing financial or tax advice!
Okay, So What’s the Best Bitcoin IRA?
Best IRA for low rates and fees
Alto IRA is a Nashville, TN, tech-based option for investing in crypto and other alternative investments. The company launched in 2016 and has since provided its services to investors.
It’s an independent firm that provides access to several investment options, including cryptocurrencies, commodities, and more. Alto IRA offers investors an alternative and more straightforward way to put their money into these investment avenues while avoiding common hassles.
Alto connects directly with Coinbase giving you access to more than 150 different coins. You can use your retirement savings to invest in crypto using Coinbase and then have that money automatically moved into a secure, self-directed IRA account at Alto.
The organization also provides outstanding customer service and blog material to guide you through the process of creating your account and financing.
Alto claims to have a transparent pricing system free from hidden charges, commissions, and investment minimums. The company lists its complete pricing guide online for users and interested parties to view and utilize.
The Alto-IRA fee structure includes $25 account and custody fees, 1% on trade fees, $25 Wire transfer fees during funding, and $50 in case you want to close an account. Other costs include a $75 private investment fee and a $10 to $50 partner investment fee.
Alto IRA and Coinbase use various security measures to protect their users’ assets, including two-factor authentication and cold storage. All Coinbase and Alto IRA employees go through comprehensive background checks during hiring.
Coinbase also encourages using solid passwords, and they utilize SSL encryption to secure data transfer channels between customers and servers. Finally, the company uses SQL injection filters to protect against unauthorized access to databases. These layers of protection help ensure that customer funds are safe from cybercriminals.
- Alto CryptoIRA® lets you buy and sell more than 200 coins and tokens through an integration with Coinbase—including Bitcoin, Ethereum, Solana and more.
- A transparent and consistent fee structure
- No account fees: There are no setup or account fees to get started. Just a low 1% fee when you make a trade.
Please read our Disclaimer: Web3 Money is a paid affiliate for many of these products and services and may receive compensation. This material has been distributed for informational and educational purposes only, and is not intended as investment, legal, accounting, or tax advice. Investing involves risk. Financial investment involves the risk of loss. We are not financial advisors nor tax advisors. The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website’s content as such. Web3 Money does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.