You may have heard that it’s possible to purchase Bitcoin tax-free if you place your Bitcoin in an IRA account. If you’re curious IRA stands for individual retirement account and is an opportunity offered by the government in order to encourage individuals to take initiative in regards to their retirement. If you’re interested in discovering tips on investing Bitcoin in IRA, continue reading.
Tips on investing Bitcoin in IRA accounts:
1. Think carefully before investing money in Bitcoin, which is marked for your IRA account
While there are countless benefits of investing money into purchasing Bitcoin in order to fund a comfortable retirement, you should definitely think twice before investing thousands of dollars into a Bitcoin IRA account as once you’ve made an investment, you won’t be able to remove your contribution until you turn 59 and a half years old.
If you are still interested in investing in Bitcoin, in order to fund your future retirement plans but want the flexibility and freedom to be able to access your account at any time, you want to forgo setting up a traditional Bitcoin IRA account, in favor of setting up a Roth IRA account. Which will allow you to withdraw the capital you invest as long as you don’t withdraw any profit which your Roth style IRA account makes.
2. Think twice before deciding to set up a self-directed IRA account
It’s also worth thinking twice before choosing to set up a self-directed IRA account as not only will you have to spend hours filling out monotonous, mind-numbing paperwork but you’ll also be responsible for securely storing your Bitcoins. If the thought of having your Bitcoins hacked scares you, it’s well worth hiring a Bitcoin custodian to manage your Bitcoins, which will give you peace of mind.
3. Get into the habit of making monthly contributions to your Bitcoins IRA account
Many individuals make a large initial investment into their IRA account before falling off track and forgetting to make regular payments into their Bitcoin IRA account. In order to reap the rewards of investing in an IRA account, which include a wide array of tax benefits, it’s important to make a focused effort to make regular contributions to your IRA account, in order for your account to grow as quickly as possible.
Just think, when the day comes when you finally turn 59 and a 1/2 you’ll wish that you had contributed more to your Bitcoin IRA account than you have. As Bitcoin should be worth several times the amount it is currently worth.
4. Avoid making early withdrawals from your Bitcoin IRA account
While you’re technically not permitted to withdraw money from your Bitcoin IRA retirement account before you turn 59 and a half, you can remove money from your account, if you’re willing to pay a steep financial penalty. That’s why you should never dip into your IRA account, in order to pay for a vacation or to purchase designer goods.
So if you’re excited about the prospect of opening up an IRA Bitcoin account, make sure to follow the 4 invaluable tips listed above.