The Ultimate Tax Solution with Crypto IRAs!

Over the past decade, crypto has shifted dramatically, growing from a unique investment to a significant player in the financial sector. The recent rise of Bitcoin and the launch of Spot Bitcoin ETFs signal a major stride towards the acceptance of crypto in mainstream finance. 

Typically, for people to tap into the crypto markets, a crypto exchange is a common place to buy and sell these assets. However, did you know that when you buy and sell crypto on an exchange, you need to pay the government taxes when you make profits?

Due to the substantial gains investors may achieve with their crypto holdings, there’s a growing interest in minimizing taxable liabilities. Lately, the integration of crypto assets into retirement planning has emerged as a strategic approach to minimizing taxable liabilities and maximizing profits.

Crypto IRAs

A Crypto IRA is a type of financial account where investors can buy and sell crypto assets within an individual retirement account (IRA). These accounts operate similarly to a crypto exchange, but with tax-benefits! 

The two most common forms of Crypto IRAs are the Traditional and Roth IRAs. In a traditional IRA, contributions are made with pre-tax dollars, allowing investors to defer taxes on their investments’ growth and potentially reduce their current taxable income. On the other hand, Roth IRA contributions are made with after-tax dollars, enabling tax-free withdrawals during retirement.

Lets break down an example of a Crypto Exchange vs. a Roth IRA:

Exchange: If you buy and sell crypto on an exchange and make $20,000 in profit, you have to pay the government taxes. 

Roth IRA: However, if you buy and sell in your Roth IRA and make $20,000 in profit, you don’t need to pay any taxes!

Additional Features of the Crypto IRA

Crypto IRAs bring a new level of adaptability to investing, allowing for 24/7 365 transactions in these assets. This flexibility enables investors to adjust to market shifts, take advantage of opportunities outside standard trading hours, and align their portfolios with personal financial goals.

By adding crypto assets into a regulated retirement plan, investors can enjoy a more secure way to dive in. Per IRS rules, Crypto IRAs must operate with a regulated, third-party chartered trust that keeps client assets secure and separate from the operational funds of the company. This approach offers a clear edge over direct exchange transactions, where such protections are often missing, making Crypto IRAs a more reliable and secure investment path.

iTrustCapital: A Leading Crypto IRA Platform

iTrustCapital stands out in this evolving market, having earned accolades as the “Best Crypto IRA Investment Platform”* in the United States. They’re committed to affordability, a broad selection of investment opportunities, and superior customer service setting it apart from other crypto platforms. This movement represents an important advancement in bridging the gap between traditional financial practices and the new era of digital assets.

* IMA Impact 2021 Awards 

This article is for information purposes only and is not intended to constitute investment advice in any way or constitute an offer to buy or sell any cryptocurrency or security or to participate in any investment strategy.  

iTrustCapital is a cryptocurrency IRA software platform. It is not an exchange, funding portal, custodian, trust company, licensed broker, dealer, broker-dealer, investment advisor, investment manager, or adviser in the United States or elsewhere]. iTrustCapital is not affiliated with and does not endorse any particular cryptocurrency, precious metal, or investment strategy.  

Cryptocurrencies are a speculative investment with risk of loss. Precious metals are a speculative investment with risk of loss. Cryptocurrency is not legal tender backed by the United States government, nor is it subject to Federal Deposit Insurance Corporation (“FDIC”) insurance or protections. Clients do not receive a choice of custody partner. The self-directed purchase and sale of cryptocurrency through a cryptocurrency IRA have not been endorsed by the IRS or any regulatory agency. Historical performance is no guarantee of future results.  

Some taxes and conditions may apply depending on the type of IRA account. ​​Investors assume the risk of all purchase and sale decisions. iTrustCapital makes no guarantee or representation regarding investors’ ability to profit from any transaction or the tax implications of any transaction. iTrustCapital does not provide legal, investment or tax advice. Consult a qualified legal, investment, or tax professional. 

iTrustCapital makes no representation or warranty as to the accuracy or completeness of this information and does not have any liability for any representations (expressed or implied) or omissions from the information contained herein. iTrustCapital disclaims any and all liability to any party for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising directly or indirectly from any use of this information, which is provided as is, without warranties.

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