Cryptocurrency IRA FAQs

A cryptocurrency IRA is a self-directed individual retirement account (SDIRA) that allows you to invest in digital currencies like Bitcoin, Ethereum, Litecoin, and other cryptocurrencies. It works just like a traditional IRA but gives you the ability to hold alternative assets alongside - or instead of - stocks and bonds.

Anyone with earned income can open a Traditional or Roth IRA. If you have an existing retirement account (401(k), 403(b), TSP, or another IRA), you can also roll those funds into a cryptocurrency IRA without tax penalty through a direct rollover.

To open an account you must be a U.S. citizen with a Social Security number, have a legal address located within the United States, be over the age of 18, and have access to a statement or online access to the account(s) you will be funding from.

Whether it is an IRA or Capital Freedom account, Coin IRA charges no account setup, monthly, or annual fees.

We charge only transaction fees based on the amount of the trade: 1.25% on a buy trade, and 1% on a sell trade whether for crypto or metals. Accounts holding precious metals incur a .0833% monthly storage fee based on average monthly value of the metals held in the account. See the full fee schedule.

Yes. The IRS requires IRA assets to be held by a qualified custodian. Equity Trust Company is Coin IRA's IRS-approved custodian partner for Cryptocurrency IRA accounts. Learn more about qualified custody and asset protection.

Under IRS Notice 2014-21, virtual currencies are treated as property for federal tax purposes. When held in an IRA, this means your cryptocurrency gains can grow tax-deferred (Traditional IRA) or tax-free (Roth IRA), depending on your account type.

The account application takes about 5 minutes online. How soon you can trade depends on funding: wire transfers to individual taxable accounts are typically the fastest, while IRA transfers and 401(k) rollovers depend on how quickly your current provider releases the funds. You can place your first trade the same day funds arrive in your account. A Coin IRA specialist can give you a timing estimate for your specific provider before you start.

Withdrawals from a Traditional IRA before age 59½ are generally subject to a 10% early withdrawal penalty plus income tax. Roth IRAs allow penalty-free withdrawal of contributions at any time, but earnings may be subject to penalties if withdrawn early. Individual taxable accounts have no withdrawal restrictions.

Your crypto is secured in Ledger Enterprise cold storage with FIPS Level III certified hardware security modules. No third party has access to your private keys. Cold storage is provided free of charge - there are no storage fees for cryptocurrency.

The minimum investment for both IRA and individual taxable accounts is $5,000. You can invest fractionally - you don't need to buy a whole Bitcoin or ounce of gold.

Your account records include each transaction's details - the type of cryptocurrency purchased or sold, the exact quantity, the price paid, the transaction fees, and the order total. When you log in to the platform, you can view your available balance, current value, transaction history, financial history, and more.

If funding with a transfer from an existing IRA, ensure the amount you want to transfer is already liquidated and sitting in an uninvested cash position. Provide your current custodian's name and phone number, your name exactly as it appears on the account, and your account number and type.

If funding with a rollover from a 401(k) or other employer plan, first establish the type of account compatible with the funds in your plan (Traditional for pre-tax, Roth for post-tax). Once your Coin IRA account is approved, contact your plan administrator with the rollover instructions provided for your new account. With employer plans, there's no need to liquidate assets in advance.

In two easy steps: place a sell trade in your account for the amount you want to withdraw (if you don't have a cash balance), then electronically complete and sign the required distribution form through the account portal. Always consult a tax professional for advice on distributions from any retirement account.