IRA Financial Group, a provider of self-directed IRA LLC and Solo 401(k) plans has announced the introduction of the cryptocurrency self-directed IRA with checkbook control.
The cryptocurrency self-directed IRA LLC structure will allow retirement account investors to purchase bitcoins and other digital assets and generate tax-deferred or tax-free gains.
“In light of the enormous demand from bitcoin investors, we are excited to offer our clients a tax efficient and cost effective way to use retirement funds to buy cryptocurrency,” stated Adam Bergman, founder of IRA Financial Group.
On March 25, 2014, the IRS issued Notice 2014-21, which for the first time set forth the IRS position on the taxation of bitcoins. According to the IRS, “Virtual currency is treated as property for U.S. federal tax purposes,” the notice said. “General tax principles that apply to property transactions apply to transactions using virtual currency.”
By treating bitcoins as property and not currency, the IRS is providing a potential boost to investors but it also imposing extensive record-keeping rules—and significant taxes—on its use. With IRA Financial Group’s self-directed IRA LLC bitcoin solution, traditional IRA or Roth IRA funds can be used to buy bitcoins without tax.
IRA Financial Group’s Self-Directed IRA LLC for cryptocurrency investors is an IRS-approved structure that allows one to use their retirement funds to make bitcoin and other investments tax-free and without custodian consent.
The Self-Directed IRA LLC involves the establishment of a limited liability company (LLC) that is owned by the IRA (care of the IRA custodian) and managed by the IRA holder or any third-party.
As manager of the IRA LLC, the IRA owner will have control over the IRA assets to make traditional as well as non-traditional investments, such as real estate.