I have often wondered if a proper crypto IRA existed with sensible fees.
I know I can Invest in BTC and ETH through some Index funds but that’s at a premium and I don’t own any of the underlying assets. I can do this via bitwise or grayscale index funds.
However I have finally found a company with sensible fees that offers me a proper crypto IRA where I own the underlying assets and they are held with a company I trust (coinbase).
There are a number of companies offering Crypto IRA with a large monthly or yearly fee, and the crypto is held with a company I have never heard of. For me this is a concern as I don’t know if they will be around when I retire.
Coinbase is one of the most trusted if not the most trusted company when it comes to crypto, so I know for sure my assets are in a good place.
You are not limited to BTC or ETH you can buy and sell any assets coinbase supports which whilst doesn’t include a lot I would like to invest it’s a lot more than other companies offer.
The way a crypto IRA works is that the digital assets are owned by the IRA account (kept at Coinbase) and you are the custodian of the IRA. You can trade crypto (buy /sell) yet take the tax advantages that an IRA gives you. Whilst you can withdraw to USD it will be the same as a normal Roth IRA taxes may apply.
http://www.altoira.com is the company they are US based and this is a proper Roth IRA not needing an LLC as some crypto IRA’s do. There support is excellent friendly, responsive and helpful which is actually what I need from a company l am using for my retirement.
In order to buy and sell crypto they use Coinbase’s API. Any cash held in your account is also coinbase account.
You do not get a login to coinbase all trades are done via http://www.altoira.com website.
For the fees there is a monthly 1% based on the average balance from the previous 30 days and 1.5% per trade fee.
I look at a crypto IRA as an addition to my other retirement accounts. I have a 401k which is company matched and a Roth IRA that is invested in stocks. I do not plan on putting the full available 6k per year at the moment into crypto but I will put a % as I think long term having a balance is best.
Just remember crypto is a very volatile market and the above is not financial advice.
Below is the list of crypto that can be traded in your crypto IRA.
|BNT||Bancor Network Token|
|SNX||Synthetix Network Token|
They support traditional IRA, Roth IRA as well as backdoor Roth.