Just like the checkbook IRA, a Bitcoin IRA sounds great and allows the mind to run wild with possibilities, but when the rubber meets the road it’s important to realize that the IRS has presented clear, specific, and difficult to meet (for the common investor) rules regarding a checkbook IRA. And although back in January, the Government Accountability Office (GOA) requested specific rules to be published by the Internal Revenue Service (IRS), about the potential liabilities and reporting requirements of holding Bitcoins and other cryptocurrencies in an IRA, no such instructions or permissions have yet been released by the IRS. So choosing to participate in such an activity at this point is entirely at the owner’s risk.
At an absolute minimum, parties interested in pursuing a Bitcoin IRA at this time should adhere to checkbook IRA guidelines. The most important thing to realize about this type of account is that if the U. S. government wanted to let people keep direct access and physical control over their retirement savings, it could easily have done so. But they CHOSE not to! At the very least a trustee requirement was imposed, as well as proven fiduciary experience on the part of the account owner, regular audits and more. Companies were created claiming to “make the process simple,” but there is no such thing. In the fine print agreement with every one of those companies releases them from all potential liability, regardless of what you’re told. Any company offering the same preparation opportunity for a Bitcoin IRA will unilaterally have the same disclaimers.
Attempting Bitcoin inclusion prior to an official explanation by the IRS can be fraught with costly liabilities. Just as an example, if the IRS ultimately decides not to allow Bitcoin inclusion within an IRA, then the potential exists for the entire amount of such an account to lose tax-deferred status and be “distributed,” which at a minimum means that it will immediately become subject to state and federal taxation, as well as a 10% penalty if the account owner is not yet 59½ years old.
Physical precious metal ownership, in the form of gold, silver, platinum, or palladium bars and coins are the most popular products for IRA inclusion. American Bullion was a pioneer of the Gold IRA industry and still maintains the highest possible ratings with companies that analyze and poll customer satisfaction. Marketing techniques permit almost any company to advertise being the best, but American Bullion prefers to have such accolades come directly and exclusively from their clients. Secure your IRA, portfolio, and future with precious metals from American Bullion, call (800) 653-GOLD (4653) today.
Although the information in this commentary has been obtained from sources believed to be reliable, American Bullion does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice. American Bullion will not be liable for any errors or omissions in this information nor for the availability of this information. All content provided on this blog is for informational purposes only and should not be used to make buy or sell decisions for any type of precious metals.