Devin BlackUpdated at: Aug 19th, 2020

Learn everything you need to know about crypto tax in our Cryptocurrency Tax Guide

How crypto IRAs work and how to choose the right crypto IRA

Because the IRS has defined crypto as property, you can have crypto in an IRA (Individual Retirement Account). IRAs can often result in immediate tax savings by way of pre-tax contributions in a Traditional IRA.

Another option, the Roth IRA, doesn't result in immediate tax savings, but it can grow and be distributed from tax free. Either one of these can be self-directed and used to invest in cryptocurrency.

For when you divest from an IRA, TokenTax's tax software for cryptocurrency can calculate your crypto taxes for your IRA capital gains.

Bitcoin & crypto IRA reviews: How to buy bitcoin with an IRA account

Many services have started to allow users to buy bitcoin and other cryptocurrencies into a self directed crypto IRA. These services work with custodians that act as a trustee for your assets.

We ran through the top crypto IRA platforms, what crypto assets they support, and what their fees and pricing structures look like. The companies we looked at are:

iTrustCapital

Bitcoin IRA

BitIRA

Regal Assets

Equity Trust

Here’s our recommended companies for buying bitcoin and crypto in an IRA.

iTrustCapital

iTrustCapital is crypto IRA trading platform founded by leaders in the alternative investment IRA industry. We consider them to be the best crypto IRA platform due to their competitive and transparent fee structure.

iTrustCapital's Los Angeles based, IRS compliant platform lets investors safely move money from their retirement accounts into cryptocurrency. All trades can be executed on your own via an online dashboard.

They offer much lower fees compared to competitors that have been established longer in more traditional alternative investment classes. And unlike many other services, there is no minimum investment amount.

All digital assets are stored with Curv, an institutional grade crypto storage solution that has eliminated security flaws inherent in private keys.

How to open a crypto IRA with iTrustCapital

To get started, you complete a simple IRA application online. Once your IRA is established, you can fund your account from an existing retirement account or fund it with a new contribution. Then, you log in to your client dashboard and can start making trades. There is no minimum investment amount.

Cryptocurrencies supported

Bitcoin (BTC)

Ethereum (ETH)

Ripple (XRP)

Bitcoin Cash (BCH)

Litecoin (LTC)

EOS (EOS)

Pricing and fees

$29.95 / month

1% fee per trade

BitIRA

BitIRA is a California based bitcoin IRA company for investing in a cryptocurrency IRA. BitIRA offers self directed IRA accounts for a variety of cryptocurrencies. Your crypto is held in secure, multi-sig hardware wallets. Their support team is very hands on, offering personalized support.

BitIRA's "My BitIRA" online platform allows investors to buy and sell crypto online for their IRA. The platform also let's users view their portfolio's performance in real time, with the ability to generate customized performance reports. Investors can also view wallet addresses to verify their holdings.

How to open a crypto IRA with BitIRA

With BitIRA, you work directly with a digital currency specialist every step of the way. They will help you fund your account, whether by rollover or new investment, as well as executing your trades. The minimum investment amount is $20,000.

Cryptocurrencies supported

Bitcoin (BTC)

Ethereum (ETH)

Ripple (XRP)

Bitcoin Cash (BCH)

Ethereum Classic (ETC)

Litecoin (LTC)

Stellar (XLM)

Zcash (ZEC)

Pricing

Custodial fees depend on your investment situation

Transaction fee: not published — call in required

Bitcoin IRA

Bitcoin IRA is a Los Angeles based platform that allows you to buy and sell crypto in your IRA. They store your crypto with Bitgo, a popular institutional grade crypto custody service. Within your client dashboard, you can buy, sell, and swap cryptocurrencies 24/7.

In addition to crypto IRA services, Bitcoin IRA also lets you lend crypto to receive interest payments, accrued daily and paid monthly. Furthermore, they offer “Digital Gold,” which is a crypto investment representing gold.

How to open a crypto IRA with Bitcoin IRA

To open an account, you fill out a quick application that asks for your investment amount, funding method, and profile information. Most accounts are ready to start trading in 3 – 5 business days. The minimum investment amount is $5,000.

Cryptocurrencies supported

Bitcoin (BTC)

Ethereum (ETH)

Ripple (XRP)

Bitcoin Cash (BCH)

Litecoin (LTC)

Stellar (XLM)

Zcash (ZEC)

Digital Gold (DG)

Pricing and fees

Initial fee of 10 – 15% depending on investment amount

5% buy fee, 1% sell platform fees

1% custodial buy/sell fee

$240 annual custodial account fee

0.05% monthly crypto wallet holding fee

$75 per asset transfer out fee, max $300

$75 asset conversion fee

Regal Assets

Regal Assets helps investors add crypto and precious metals to their investment portfolios and retirement accounts. Their customer service is highly rated by benchmarks like Forbes and Inc 500.

Setting Regal Assets apart from other crypto IRA providers is their wide selection of cryptocurrencies. In addition to the major assets like Bitcoin and Ethereum, they allow you to add many altcoins, like Chainlink and Tezos, to your investment.

How to open a crypto IRA with Regal Assets

First, you fill out their application form online. Once your application is processed, your account will be ready to be funded. You can rollover (transfer) any previous retirement account into your crypto IRA, with assistance from Regal Assets. A $10,000 investment per account / $5,000 investment per crypto minimum is required.

Cryptocurrencies supported

In addition to all the major currencies like Bitcoin, Ethereum, Ripple, and Litecoin, they offer a wide selection of the top altcoins — too many to list here. For more information, here is Regal Assets’s full crypto investment offerings.

Pricing and fees

$20 monthly dues

0.07% of crypto value monthly dues

$240 yearly dues

0.84% of crypto value yearly dues

Transaction fee: not published — call in required

Equity Trust

Equity Trust offers self directed investment accounts solutions for many kinds of alternative asset classes, including digital currencies. Established in 2001, Equity Trust has an established track record of providing self directed IRAs and 401ks to their clients, with over $25 billion in retirement plan assets under administration as of the end of 2017.

You can purchase crypto on Equity Trust’s digital assets platform, and your crypto is held securely in cold storage by digital asset custodian Vo1t. Equity Trust handles the purchase and storage transfer of your crypto assets; however, there is no ability to make trades yourself on an online dashboard.

How to open a crypto IRA with Equity Trust

To get started with an Equity Trust crypto IRA, you complete an application on their website. Note that the minimum balance required to open an account is $10,000.

Cryptocurrencies supported

Bitcoin (BTC)

Ethereum (ETH)

Ripple (XRP)

Bitcoin Cash (BCH)

Ethereum Classic (ETC)

Stellar (XLM)

Zcash (ZEC)

Pricing and fees

$20/month platform fee

0.07%/month cold storage fee based on balance

3.5% purchase fee

1% sale fee

One platform establishment fee regardless of account size

To stay up to date on the latest, follow TokenTax on Twitter @tokentax.