10 Best Bitcoin IRA Companies in 2022 (BTC, Etherium, and Crypto IRAs)
Although Bitcoin and other cryptocurrencies are still seen as an alternative investment, mainstream financial institutes can no longer ignore the value and legitimacy of these digital assets.
As a result, several bitcoin-backed investment vehicles have become available, the most popular of which are Bitcoin IRAs.
However, knowing which Bitcoin IRA providers are legitimate and which ones are not can be difficult.
Because of this, we’ve taken the time to research and identify the best Bitcoin IRA companies, all of which are detailed below.
Quick Look:
- Best overall – Bitcoin IRA
- Best for active traders – iTrust Capital
- Great for crypto newbies – Bitcoin Advizers
- Excellent security – BitIRA
- Best for checkbook IRAs – Broad Financial
- Best customer service – CoinIRA
- Great rollover support – BlockMint
Top Bitcoin and Cryptocurrency IRAs in 2021
1. Bitcoin IRA – One of the Top Crypto IRA Companies
- Largest crypto IRA platform
- No minimum lockup period
- Traditional & Roth IRA rollovers
- 8 cryptocurrencies available
- Monthly payouts
With over 100,000 users, Bitcoin IRA is one of the largest Bitcoin IRA platforms in the world.
The company offers both traditional and Roth IRA rollovers and has been featured in publications like The Wall Street Journal, Forbes, and CoinDesk.
Users can access the platform via an easy-to-use mobile application that supports live trading capabilities, easy funding options, and even a custodial service.
Creating an account takes as little as 3 minutes and all funds are protected by a 700 million insurance policy.
The company also offers a self directed Bitcoin Earn IRA, which provides holders with up to 6% interest on their cryptocurrency holdings. This Earn program is done via a partnership with Genesis – one of the largest institutional investors in cryptocurrency.
Clients also have the option to set up recurring cash transfers for automated investing. As of now, Bitcoin IRA supports 8 cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Cardano (ADA).
Custodial duties are handled by BitGo, a leading digital asset trust company with a reputation for providing top-notch security and quality asset insurance.
2. iTrust Capital – Best Bitcoin IRA Company for Active Traders
- Custody services provided by Coinbase
- 1% trading fees
- $2,500 minimum deposit
- 25 Cryptocurrencies supported
- Automatic IRS/tax reporting
If you’re looking to engage in regular crypto trading, but don’t feel comfortable depositing funds into an unregulated cryptocurrency exchange, iTrust Capital is an excellent alternative.
Not only does iTrust offer tax-free crypto IRAs, but trade settlement times can be as low as 15 seconds.
By contrast, many other popular Bitcoin IRA providers feature settlement times of up to 1 day. Additionally, iTrust Capital provides its clients with access to 25 different cryptocurrencies along with gold and silver contracts.
No fees are charged for in-kind transfers and all trades come with a 1% commission. Moreover, users aren’t charged a monthly account fee and all holdings are protected by a $370 million custodial insurance policy.
3. Bitcoin Advizers – Great for Crypto IRA Newbies
The major downside to Bitcoin Advizers is the fees.
For starters, all new accounts are subject to a one-time payment of $550 followed by yearly payments of $195. Custodial fees come out to $20 a month and all IRAs held through the company come with a 0.7% yearly charge.
If you’re new to Bitcoin and cryptocurrency and don’t know where to start, Bitcoin Advizers may be a good option. If you’re already fairly familiar with digital assets and crypto investment vehicles, options like Bitcoin IRA and iTrust Capital may be the better choice.
4. BitIRA – Top Cryptocurrency IRA for Security
- Founded by Birch Gold Group
- $100 million end-to-end insurance policy
- 8 cryptocurrencies available
- $5,000 minimum initial deposit
- $195 yearly account fee
BitIRA was founded in 2017 by Birch Gold Group, a well-known provider of precious metal IRAs.
Although the asset class is different, BitIRA is run by experienced professionals who truly know the ins and outs of IRAs.
The company is accredited with the Better Business Bureau and has enjoyed overwhelmingly positive customer reviews. BitIRA also maintains a highly informative blog that covers all the latest news and developments from the crypto-sphere.
Custodial duties are split between Equity Trust Company and Preferred Trust Company, both of which are highly reputable.
One unique feature of BitIRA is that all funds are covered by a $100 million end-to-end insurance policy, meaning crypto holdings are insured during transactions and while in cold storage.
As of now, BitIRA provides customers with access to 8 cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Chainlink (LINK).
All new accounts come with a $50 setup fee followed by a $195 yearly maintenance fee. Storage costs amount to .05% per month and a minimum initial deposit of $5,000 is required to open an account.
5. Broad Financial – Best for Checkbook IRAs
- Checkbook IRAs available
- No minimum investment amount
- Real-estate & precious metals also available
- $1,400 start up cost
Broad Financial is a well-established vendor of retirement investment vehicles including self-directed Bitcoin IRAs and solo 401(k)s.
The company also offers checkbook control Bitcoin IRAs to those wanting more control over their retirement savings.
Checkbook control means you don’t have to rely on an account administrator to transfer funds or make a purchase. Additionally, having checkbook control can greatly reduce the cost of administration and maintenance fees.
At $1,400, start-up fees are a bit higher than other Bitcoin IRA options and annual maintenance fees can be as high as $320.
However, unlike the other options we have covered, Broad Financial customers have the freedom to invest in nearly anything with their IRA, including real estate, gold, securities, and cryptocurrency.
6. CoinIRA – One of the Best Bitcoin IRA Companies for Customer Service
- Saver Bitcoin IRA available
- A+ rating with the BBB
- Quality customer service
- 8 cryptocurrencies supported
CoinIRA is a subsidiary of Goldco, one of the most trusted providers of precious metal IRAs in the United States.
The company currently enjoys an A+ rating with the BBB and has been accredited since 2017.
Besides offering both standard and Roth Bitcoin IRAs, CoinIRA has a system in place to facilitate the buying and selling of cryptocurrencies outside of one’s IRA.
Although this service is somewhat unique, it can only be done over the phone and only 8 cryptocurrencies are currently supported.
CoinIRA also offers a saver IRA plan that allows users to deposit money into their retirement account every month. Once deposited, the funds are then used to purchase the cryptocurrency of their choice.
The company does have two major drawbacks to its service:
For starters, fees are not transparently listed on the website, meaning potential customers will have to book a consultation to find out more information. Secondly, while CoinIRA does facilitate cryptocurrency trades – agents are only available during normal business hours.
7. Block Mint – Excellent Rollover Support
- 7 cryptocurrencies supported
- $10,000 minimum deposit
- 15% transaction fee
- Traditional, Roth, and SEP IRAs available
Block Mint was launched by Lear Capital, a company that’s conducted nearly $3 billion in retirement asset transactions since 1997. Along with traditional IRAs, Block Mint also offers Roth, SEP, and SIMPLE IRAs.
Funds can be rolled over tax-free from almost all 401ks, 403bs, 457bs, Thrift Savings Plans, and TIAA CREF plans. There are currently 7 cryptocurrencies available for purchase through Block Mint, including Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC).
All custodial responsibilities are handled by Trust Equity, an IRS-approved custodial service.
Equity Trust charges a 2.5% transaction fee and a 1% sell fee. On top of this, Block Mint charges a 15% commission on all crypto purchases – although discounts are available for large volume purchases.
New accounts have a minimum deposit requirement of $10,000. Once opened, all accounts are subject to a $195 annual maintenance fee and a storage fee of 0.05%.
Top Cryptocurrency IRAs: FAQs
What Is a Cryptocurrency IRA?
An Individual Retirement Account (IRA) is an investment vehicle that helps people save for retirement. The primary advantage of an IRA is the fact that it offers tax-free growth and can be self-directed, meaning they offer a greater level of control compared to a 401k.
Most contributions made to an IRA are tax deductible, meaning whatever amount you contribute, can be deducted from your yearly income, reducing the amount of income tax you have to pay.
Funds in an IRA can also be invested to increase their value. Normally, people invest their IRA into traditional investment vehicles like stocks, bonds, precious metals, and even real estate.
As you may have guessed, Cryptocurrency IRAs function just like a standard IRA but allow holders to invest their funds into cryptocurrencies.
What Are the Advantages of Bitcoin IRAs?
The main advantage of a cryptocurrency IRA is the potential for massive gains. Although highly volatile, Bitcoin and many other cryptocurrencies have greatly outperformed more traditional asset classes, including stocks, bonds, precious metals, and even real estate.
Furthermore, there are many people who would like to invest in the cryptocurrency market but don’t feel comfortable keeping their retirement savings in an unregulated off-shore cryptocurrency exchange. Similarly, due to unfamiliarity with the technology, many are uncomfortable managing a cryptocurrency wallet.
These concerns have ultimately led people to Cryptocurrency IRAs, as the providers take care of all custodial responsibilities. Furthermore, all funds in a crypto IRA are insured by custodial insurance, meaning even in the event of a hack, customers are covered.
As stated above, all funds deposited into an IRA are tax deductible. When you buy and hold cryptocurrency on an exchange like Coinbase or Binance, the funds cannot be deducted from your annual income.
Finally, while many people see the value and potential in decentralized digital assets, interacting with the cryptocurrency markets is still very confusing to some. This is another reason why Bitcoin IRAs are growing in popularity.
What Is Crypto Cold Storage?
When reading about crypto custodial services, you’ll likely come across the term ‘cold storage’. Simply put, cold storage refers to the act of storing cryptocurrencies in any wallet not connected to the internet.
When a wallet isn’t connected to the internet, it significantly reduces the odds of someone other than the owner gaining access to the private keys.
When a cryptocurrency like Bitcoin, Ethereum, or Litecoin is purchased, the purchaser is issued a public and private key. These keys are made from a sequence of numbers and letters and ensure ownership of the particular coin in question.
Wallets store these keys and keep them safe from prying eyes. Wallets come in two forms, software and hardware wallets. Storing keys in a software wallet is called hot storage since software wallets are always connected to the internet. Storing keys on a hardware wallet is called cold storage since they don’t maintain an active connection.
If this sounds confusing to you, don’t worry – the custodial service used by issuers of Bitcoin IRAs will take care of all storage issues, meaning you only have to decide which cryptocurrency you want to invest in.
What Is an IRA Rollover?
An IRA rollover is the transfer of funds from an employer-sponsored investment account (like a 401k or 403b) into an IRA.
People do a rollover to gain more control over their retirement fund while maintaining the tax free benefits. IRA rollovers are also done when an individual leaves an employer with whom they had a 401k. If they don’t roll over their 401k to their new employer, rolling it into an IRA is often considered the best alternative.
Is a Rollover IRA Taxed?
Generally speaking, when 100% of the funds from an employer-sponsored retirement plan is rolled over into an IRA, the account owner doesn’t have to pay any taxes.
That said, if less than 100% of the funds are rolled over, the account owner can expect to pay some taxes on the transfer.
What Are Custodial Fees?
When you purchase cryptocurrency for your IRA, the transaction is processed by a broker with whom the IRA provider is parterned with. Not only do they facilitate the transaction, but they’re also responsible for storing the cryptocurrency.
This responsibility requires custodial providers to take out large insurance policies to protect them and their customers from potential security breaches.
To make up for these costs, custodial services charge a small monthly fee, which for the IRA holder, is usually between 0.5% – 0.7% of their total account value. Custodial providers also charge fees for processing buy and sell orders which can range from 1% – 15%.
What Are the Different Types of IRAs
Although there are roughly 10 different types of IRAs, only four are relevant when it comes to cryptocurrency – Traditional, Roth, SEP, and SIMPLE.
Traditional IRA – A traditional IRA is the most common type of IRA and is the option most often used by people who don’t have access to an employer sponsored retirement plan. Anyone under the age of 70 can open and contribute to a traditional IRA.
Contribution limits are capped at $6,000 for those under the age of 50. For individuals 50 years of age or older, this cap is increased to $7,000 per year.
Roth IRA – Roth IRAs are similar to traditional IRAs but with one big distinction – all contributions are made with after tax dollars. To make this clear, taxes are paid on all contributions going into an IRA, but no tax is paid upon withdrawal.
The primary reason why people elect to go with a Roth IRA over a traditional IRA is that they believe taxes will be higher in the future. Unlike traditional IRAs, contributions to a Roth IRA can be made at any age so long as the contributor has reported an income.
Roth IRAs are only available to those in a certain income bracket, meaning if you make too much money, you can’t open one. In 2022, the income limit will be $144,000 for singles and $214,000 for couples. Roth IRAs have the same contribution caps as traditional IRAs.
SEP IRA – A Simplified Employee Pension IRA is essentially a traditional IRA for small business owners and self-employed individuals. SEP IRAs can also be used by small businesses that have a very small number of employees.
Like a 401k, any contribution to a SEP IRA made by an employee must be matched by the employer. Unlike Roth IRAs, you can’t opt to pay taxes on SEP contributions now to avoid paying them later.
SIMPLE IRA – SIMPLE stands for ‘Savings Investment Match Plan for Employees’ and is available to businesses with fewer than 100 employees. Employees can make a yearly contribution of $14,000 or 3% of their salary, whichever is less.
While some Bitcoin IRA providers (like Block Mint for example) do offer SEP and SIMPLE IRAs, most offer only Traditional and Roth.
How to Choose The Right Bitcoin IRA
When deciding upon which Cryptocurrency IRA provider to choose, there are a couple of criteria to keep in mind, the most important of which are:
Monthly Account Fees – If you plan on making small contributions, monthly account fees are of great importance – after all – the major benefit of IRAs is the tax-free growth. If the monthly account fees are too high, they can offset this advantage.
Supported Cryptocurrencies – Some Crypto IRA providers, like iTrust Capital, offer over 20 different cryptocurrencies for their customers to invest in. By comparison, other providers may only offer 7. If you have a particular coin or token you’re looking to invest in, always double-check that it’s supported by the IRA provider of your choice.
Trading Fees – Some IRA providers charge as much as 15% to transact a buy or sell order. While this may not be the biggest issue for those planning on making only a few purchases a year, it can prove costly for active investors.
Insurance Policy – When comparing different Bitcoin IRA providers, always check to see what kind of insurance policy their custodial service uses. Additionally, it’s a good idea to do a bit of background research on the custodial service to see if they are reputable or not.
Final Thoughts on the Best Cryptocurrency IRAs 2021
As digital assets continue to gain acceptance amongst retail and institutional investors, the value of Bitcoin and other cryptocurrencies is expected to rise.
Similarly, as the federal government continues to increase the money supply, many investors are looking to Bitcoin and other large-cap cryptocurrencies as an excellent hedge against inflation.
Whether it be with Bitcoin IRA, iTrust Capital, or any other provided on our list, it may be time to consider investing some of your retirement savings into cryptocurrency.
