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Title: IRA Rollover? Post by: SmokinAl on January 21, 2022, 01:57:46 AM Hello, total unknowledgeable newb here; but we have to start somewhere I guess.
My situation is this; I have some funds in an IRA at a financial institution who does not participate in BTC. I would like to get started in BTC and have started doing some reading/asking etc... My thought was that I would have to close this account, pay the 10% penalty, pay other fees/taxes, then buy BTC outright. Someone mention that I may be able to transfer this IRA $ from said institution to another institution who offers/participates in BTC, not have to pay penalty, taxes etc....; but his knowledge was only slightly greater than mine. That's what brings me here. Is this acurate? Is this how it works? Other smart options? Thank you for putting up with my inexperience Title: Re: IRA Rollover? Post by: mk4 on January 21, 2022, 02:39:05 AM Why not just slowly build up your bitcoin holdings using your wages/earnings, instead of sacrificing your IRA and paying a penalty? You don't need to go all in on one go, just dollar-cost average.
https://dcabtc.com/ Title: Re: IRA Rollover? Post by: Poker Player on January 21, 2022, 07:14:45 AM I am with mk4 on this. Keep in mind that apart from paying 10% you will also have to pay other taxes and the bill could be very expensive. Transferring it to another IRA that has investment in Bitcoin seems to me to be a better option, but in my particular case I have it separated. I have funds in retirement account that is not exposed to Bitcoin and I buy Bitcoin regularly doing DCA. Since that is what I do, I recommend it. Don't be in a hurry and build up your Bitcoin investment little by little.
Title: Re: IRA Rollover? Post by: DaveF on January 21, 2022, 12:34:25 PM This is not Tax advice consult a tax professional. You also did not say where you are located this is for the USA but:
Transfers are usually tax free if made to similar accounts. However, IRA transfers must be made within 60 days to avoid tax penalties. So if you do it yourself you have 2 months more or less to pull the money from one account and put it in another. Many, probably all, brokerages will do this for you too. You setup an account in the one you want, give them the information from the old one and they take care of it. And, if they mess up something it's on them to fix it. But, as I started with, consult a tax professional. Also, keep in mind some employer setup IRAs have different rules set by your job. -Dave Title: Re: IRA Rollover? Post by: odolvlobo on January 22, 2022, 07:01:36 AM My thought was that I would have to close this account, pay the 10% penalty, pay other fees/taxes, then buy BTC outright. Someone mention that I may be able to transfer this IRA $ from said institution to another institution who offers/participates in BTC, not have to pay penalty, taxes etc....; but his knowledge was only slightly greater than mine. I know that you can transfer funds and assets from one IRA account to another IRA account without penalty, but I don't know the details. I know of two ways to investing in BTC in an IRA. You can go to a company that specifically deals with IRA accounts that hold bitcoins, or you can buy shares of GBTC in an IRA that allows you to pick your own stocks. Title: Re: IRA Rollover? Post by: Gozie51 on January 22, 2022, 11:18:37 AM Why not just slowly build up your bitcoin holdings using your wages/earnings, instead of sacrificing your IRA and paying a penalty? You don't need to go all in on one go, just dollar-cost average. https://dcabtc.com/ I will go with this for you or something similar to you. I opened the link and saw this is a gradual investment plan that will benefit not just you but anybody that finds it worthy. Bitcoin or cryptocurrency is suppose to be an asset that we have and whose custody we have without encumbrances. Apart from tax collections from originating country and fees charged during transaction, I don't encourage any third party encumbrances. |