Bitcoin investment sites 401k

bitcoin investment sites 401k

Cryptocurrency does not generally fall into any category of prohibited transactions. Therefore, is an allowable investment for a Solo k for Bitcoin, or. The guidance identifies five areas of concern facing (k) plan investment in cryptocurrency: Volatility and speculative nature of crypto. The advantage of using retirement funds to buy cryptocurrency is that all gains are tax-advantaged. So long as your (k) plan documents permit. bitcoin investment sites 401k

Bitcoin investment sites 401k - interesting. Prompt

How to Buy Bitcoin with a (k): What You Need to Know" width="" height="">Investing In Bitcoin With Your (k)

Even if you don’t become a bitcoin millionaire, right now might prove to be an excellent time to buy bitcoin with your (k) or standard IRA. If you&#;re asking yourself, &#;Can I invest my (k) in bitcoin?&#; the answer is, well, maybe. It depends on your situation, so read on to learn more.

This article will explain some of the eligibility requirements to purchase bitcoin with your (k) funds by moving it into a Bitcoin IRA, show you the benefits of making this move, and describe the three steps that go into getting started.

Making an investment in bitcoin (one of more than 1, cryptocurrencies) has a number of benefits for your retirement that standard asset classes can&#;t match.

By investing your (k) savings into bitcoin (which can be achieved by converting your retirement plan into a self-directed IRA), you gain a huge amount of freedom of choice. That&#;s because you&#;ll be able to select from more options for your retirement plan than the conventional investment choices that are usually available in the market.

But there are also a number of other details to consider before deciding to roll over your (k) into a Bitcoin IRA. Self-directed IRAs (SDIRAs) are a relatively unknown category of IRAs that unlock access to asset classes that sometimes have extraordinary growth potential. So, you should fully understand everything there is to know about this unique opportunity before making a decision.

Finally, because most people don&#;t fully understand how to get started transferring their (k) savings into digital currency such as bitcoin core (the original bitcoin), bitcoin cash, Ethereum, or Litecoin, this article will explain that as well.

To learn more, keep reading below, or watch the video here:

More People Than Ever Are Investing (k) Savings in Bitcoin

Here are seven reasons why.

  1. Get in on the ground floor of &#;the next big thing,&#; a major disruption of the central banking system. Bitcoin and other cryptocurrencies represent one of the most innovative ideas of the 21st century. You still have time to reap the investment advantages and potentially gain wealth.
  2. You can leverage tax-deferred personal property status by investing (k) savings in a Bitcoin IRA. Thanks to the IRS Notice , digital currency such as bitcoin is treated as personal www.oldyorkcellars.com you accrue can be retained tax-free until you take a distribution. But you also have an enormous advantage when you buy bitcoin for your IRA and sell it later while keeping your funds within your www.oldyorkcellars.com this scenario, you can reinvest your capital into any IRA-eligible asset and still get tax-deferred benefits. These assets can include stocks, bonds, mutual funds, ETFs (exchange traded funds), precious metals, private equity, certain types of real estate, and more.
  3. You can further diversify your retirement plan by rolling part of it into a Bitcoin IRA. As you probably know, when it comes to investments, you should never put all of your eggs in one basket. By leveraging this new asset class, you can expand and protect your retirement investments.
  4. You get to leverage the power of the blockchain with fast, secure, peer-to-peer confirmation and mediation. Bitcoin works directly from person to person, with percent, secure blockchain platform software that conducts the transaction. This allows you to remove the &#;middle men&#; like governments and banks, and take back control of your retirement.
  5. You can protect part of your retirement savingsfrom inflation. Some digital currencies (including bitcoin) have a hard limit on how many tokens are available. All cryptocurrencies become harder to get as supply increases. This is called adaptive scaling. Unlike easy-to-get fiat money that is printed on demand, a Bitcoin IRA allows you to hedge your savings against inflation.
  6. You can take control of the funds in your old (k), so it&#;s not under the influence of the central bank policies. Cryptocurrencies like bitcoin don&#;t rely on the performance of our central banking system. They are decentralized, so they don&#;t have a controlling entity that the money flows through. This means this part of your retirement funds cannot be manipulated. Governments and banks can&#;t interfere.
  7. Hedge against a &#;stock bubble&#; that might turn your retirement planinto rubble. Roughly every 6 to 10 years, the market price corrects for overvalued stocks. If you don&#;t have money in the right places, your retirement savings could suffer the consequences. As one of the things that you can do to avoid this, roll some of your (k) into a Bitcoin IRA to protect yourself.

Before you can take advantage of these rollover benefits, there are specific details you need to know, and three steps you must take.

Buy Bitcoin with Your (k) Savings or Standard IRA

In as little as a few days from now, you can convert your (k) savings to buy bitcoin.

But most (k) programs don&#;t allow the direct purchase of digital currency. So the easiest and quickest way to get the benefits we&#;ve listed above is to use a self-directed Digital IRA.

&#;Self-directed&#; means you&#;re in charge. While that may sound challenging, it&#;s really simple. Plus, you get to maintain complete control of your investments. On top of that, IRS guidelines allow these sorts of IRAs to invest in a complete assortment of different assets, including bitcoin. They can include gold, silver, real estate, private equity, and more.

Make Sure that You&#;re Eligible

The general rule of thumb is that you established your (k) as a full-time employee from a previous employer, or you are more than years old. Other eligibility requirements can vary, depending on the type of retirement plan you have, such as a Roth IRA, (b), and Thrift Savings Plan (TSP).

Please note, the rules dictating eligibility to move a (k) to an IRA aren&#;t always crystal clear and can vary from person to person. If you are confused or unsure of your own eligibility, please contact BitIRA today for a complimentary consultation.

We have a team of IRA Specialists, who are well-versed in the rules of (k)-to-Bitcoin IRA rollovers. If you make a bitcoin investment for your SDIRA, they can assist you with the entire transfer process to make it quick and easy. However, please note that there is no obligation for you to take any action after your consultation.

Here are the three steps to take to convert your (k) savings into bitcoin:

  1. You open and fund a self-directed Digital IRA with a qualified custodian, so you&#;ll be able to start the process of transferring your (k) savings to a bitcoin-based retirement plan. In order to set up this new account, our IRA Specialists can complete as much of the paperwork as you&#;d like; we&#;ll adjust to your level of comfort. With BitIRA, your new custodian will be Equity Trust Company (ETC), a licensed trust company with a specific focus on self-directed IRAs. Their expense rates are among the most competitive in the industry, especially as it relates to Bitcoin IRAs.
  2. BitIRA works with your custodian and our bitcoin exchange partner Genesis to set up and fund your account. You’ll receive credentials to trade your new digital currency assets as you see fit. Because Genesis oversees one of the largest global networks of trading partners in the cryptocurrency market, you can buy and sell bitcoin with the confidence of stable prices and extremely fast transactions.
  3. Your bitcoinwill be stored in a digital or bitcoin wallet via our proprietary solution, the world&#;s first fully-insured cold storage wallet for digital currency IRAs. Simply put, there is no more secure option for storing cryptocurrencies in your IRA.

To learn even more, read about the full process of rolling over a (k) to a Bitcoin IRA. To learn about the relationships between bitcoin prices, value, and technology, read our bitcoin IRA backgrounder.

How to Buy Bitcoin With a (k)

The team at BitIRA has been helping Americans purchase alternative assets for their IRAs for years;. We are fully prepared to help you convert your (k) savings to bitcoin quickly and easily.

Contact us today to get started. First, your Digital Currency Specialist will answer all of your questions. Frequent questions that they can answer include:

  • How is a Bitcoin IRA IRS-compliant?
  • Which digital coins can I purchase for my IRA?
  • Can I transfer retirement accounts beside a (k)?
  • What are the fees, and what do they cover?
  • How do I know that my cryptocurrency will be secure?

Then, your Digital Currency Specialist can help you complete paperwork, oversee rollovers, explain asset options, assist with contributions or distributions, offer ongoing support… and a whole lot more.

For bitcoin market and product news, check out our blockchain blog.

To take the first step in converting your (k) savings to bitcoin in a digital currency IRA, contact us today.

Источник: [www.oldyorkcellars.com]

Our Blog

Bitcoin, along with other digital currencies, continue to take the financial world by storm. Rising both in popularity and demand, cryptocurrencies are becoming the can’t-miss investment opportunity of the digital era. With the value of Bitcoin recently surpassing k in January , we think it’s about time the financial services industry has a serious discussion around adding Bitcoin - and other cryptocurrencies - to the long list of investment options in the average (k) plan.

Background on Bitcoin

Over the past decade, Bitcoin has consistently been a hot topic in the financial services industry. Since it’s creation in , Bitcoin has been known for its volatility, with prices soaring one day then plummeting the next. Cryptocurrencies may be unpredictable, but the long-term gains are undeniable. It’s almost hard to imagine that in , Bitcoin was trading for a mere $ per coin. Flashforward to February 8, , and Bitcoin was changing hands at a jaw-dropping $47, To put that into perspective, if a person invested $1 in bitcoin in , it would be worth well over $k today.

Is Bitcoin an investment option in retirement plans?

When planning for retirement, it’s important to take a birds-eye approach and consider all the options when developing an investment strategy. That said, incorporating cryptocurrencies like Bitcoin in a traditional retirement account hasn’t even been an option on the table until recently. Due to the complex nature of retirement plan design, most retirement firms haven’t had the financial, technological, and legal capabilities needed to present these types of options to their clients. However, with the development of the world’s first Bitcoin (k) plan, companies that work with Leading Retirement Solutions are now able to add digital assets like Bitcoin to their nontraditional investment options.

While Bitcoin may be considered a volatile investment, the long-term returns are more than evident. It’s important to acknowledge that prior to about years ago, the concept of digital currency was essentially incomprehensible to the average person. Like all revolutionary technologies, cryptocurrencies simply required time to be familiarized by the public.

“Bitcoin has matured — though it's still in an early adoption phase — and now offers significant long-term value.” -CNN

Why should employers incorporate Bitcoin in their employee benefits package?

As a business owner, you want to design a retirement plan that optimizes the benefits for both you and your employees. A (k) plan that is capable of incorporating nontraditional investments like Bitcoin simply expands potential growth opportunities. Obviously, not everyone is looking to bet on Bitcoin, but at least having the option available carries significant weight for employees.

Another benefit to investing in Bitcoin through a (k) are the tax incentives. Due to IRS official guidance on the tax treatment of Bitcoin in as property, many already had access to Bitcoin IRAs, but few were offered a Bitcoin (k) plan. With the Leading Bitcoin (k), companies can offer employees the ability to invest traditional or Roth (k) dollars into Bitcoin. For those that do not know, a traditional (k) allows pre-tax dollar investments with deferrals on income taxes until withdrawal and a Roth (k) allows post-tax dollar investments with no tax obligations on capital gains for qualified withdrawals.

The retirement plan administration professionals at Leading Retirement Solutions are industry experts in nontraditional investment strategies. Like many other nontraditional investments, Bitcoin can be associated with significant legal risk if not implemented into a retirement plan correctly. To avoid facing potential legal repercussions, it’s extremely important to consult a qualified retirement plan administrator, before integrating digital assets like Bitcoin into your retirement plan. Companies like LRS ensure Department of Labor and IRS compliance. Once these accounts are created, your (k) Plan is ready to go and can be funded on your next pay period and with rollovers/transfers from old retirement accounts, including IRAs, (k), (b), pension plans, and more!

As we continue to navigate through the digital age, conversations regarding Bitcoin and other digital assets are bound to continue. Why not innovate ahead of the curve and create an employee benefit plan that keeps up with the latest market trends?

For more tips and information regarding retirement plans, contact us.

Connect with us on Facebook, LinkedIn, and Twitter!

Источник: [www.oldyorkcellars.com]

Rolling over your (k) to bitcoin - step by step guide <div><h2>Is Crypto Too Cryptic for Your (k) Plan?</h2><div><p>It started sometime last year and, in hindsight, was inevitable.  Clients with (k) plans and a crypto-savvy employee population began asking whether they could offer cryptocurrency as a plan investment option.  In the (k) world, where even a self-directed brokerage window with built-in investment limitations can be too risky, the answer seemed obvious – watch out!  Cryptocurrency is notoriously volatile and, quite frankly, confusing for many investors.  For that reason, it doesn’t seem to pair well with (k) retirement planning, where plan fiduciaries are charged with choosing investments that balance long-term growth with a certain level of stability and reasonable fees.</p><p>Cryptocurrencies were first introduced in when Bitcoin software was released.  While there are many forms of cryptocurrency, they generally use blockchain technology and cryptography to secure transactions.  Likely due to the anonymity of transactions, the currency became attractive in the online black market, facilitating transactions for illegal drugs and false IDs.  It is also the currency of choice for threat actors, making seven-figure, sometimes eight-figure demands in connection with ransomware and other attacks.  However, some years later, Bitcoin, Ethereum, and other cryptocurrencies became more mainstream, valuations rose, and markets for trading these currencies emerged, such as Coinbase.</p><p>Soon, the idea of offering cryptocurrencies as an investment option in a (k) plan gained traction.  After all, nothing under ERISA or the Internal Revenue Code expressly prohibits cryptocurrency from being included as a (k) plan investment option.  The Department of Labor is now weighing in, however, and recently released Compliance Assistance Release No.  (Release), in which it “cautions plan fiduciaries to exercise extreme care before they consider adding cryptocurrency to a (k) plan’s investment menu for plan participants”.</p><p>The Release expresses concern about the prudence of a fiduciary’s decision to expose participants to either direct investments in cryptocurrencies or other products tied to the value of cryptocurrencies for the following reasons:</p><ol><li><p>cryptocurrencies are highly speculative and volatile, which can have a devasting effect on participants—in particular those close to retirement;</p></li><li><p>cryptocurrency is still new and can be confusing for plan participants who are hearing the anecdotes of big returns without necessarily understanding the risks involved;</p></li><li><p>there are custodial and recordkeeping concerns since cryptocurrencies general exist as lines of computer code in a digital wallet, rather than in trust and custodial accounts like traditional (k) plan assets;</p></li><li><p>there are concerns about the reliability and accuracy of cryptocurrency valuations—the methodology for which is still contested; and</p></li><li><p>cryptocurrency regulation is still in flux—the Release provides the example that some cryptocurrency sales may constitute the unlawful sale of securities in unregistered transactions.</p></li></ol><p>The Release further indicates that the DOL expects to conduct an investigative program aimed at plans offering investments in cryptocurrency and related products and to “take appropriate action to protect the interests of plan participants and beneficiaries” regarding cryptocurrency investments.  Plan fiduciaries are put on notice that they must be ready to “square their actions with their duties of prudence and loyalty” in light of the risks set out by the Release.</p><p>The stakes are high when plan fiduciaries make investment choices in any scenario, since a breach of their duties to, as the Release puts it, “act solely in the financial interests of plan participants and adhere to an exacting standard of professional care” can lead to personal liability for any losses to the plan resulting from that breach.</p><p>This isn’t to say that cryptocurrency won’t eventually be accepted as a prudent (k) plan investment option.  But, for now, it’s probably wise for plan fiduciaries to hit the pause button.</p></div><div> Jackson Lewis P.C. © National Law Review, Volume XII, Number 80</div>Источник: [www.oldyorkcellars.com]</div> <div><div><p>Kryptonite is a fictional substance that causes the mighty Superman to lose all his strength. According to a recent release from the U.S. Department of Labor Employee Benefits Security Administration (“DOL”), cryptocurrency might carry similar dangers for otherwise strong and healthy (k) plan accounts. That is, in DOL’s view, the benefits of cryptocurrency in (k) plans may prove to be just as fictional as kryptonite, thereby causing significant risks of losses for retirement security.</p><p>On March 10, , DOL issued Compliance Assistance Release No. (the “<u>Release</u>”) to caution plan fiduciaries to exercise extreme care before considering whether to include investment options like cryptocurrency as part of a (k) plan’s investment menu. In so doing, DOL raised five key concerns associated with offering these types of investment options.</p><p><strong>DOL’s 5 Reasons Why Cryptocurrencies Might be Like “Crypto-nite” to Participant Retirement Accounts:</strong></p><ol><li><strong>Digital Assets Are Highly Speculative and Volatile</strong></li></ol><p>After noting that the SEC has also warned of the highly speculative nature of cryptocurrency, DOL cautioned that the extreme price volatility of cryptocurrency investments can have a devastating impact on participants with significant allocations to cryptocurrency. According to DOL, this volatility might be attributable to the many uncertainties surrounding the valuation process, fictitious trading practices, and widely published reports of theft and fraud, among other factors.</p><ol><li><strong>Obstacles Inhibit Participants From Making Informed Decisions</strong></li></ol><p>The Release noted that cryptocurrencies are often presented to investors as “innovative investments” that provide “unique potential for outsized profits;” resulting in participants having high return expectations with little appreciation for the unique risks and volatility associated with cryptocurrencies. DOL also pointed out that these investments do not have the types of traditional data that novice and expert investors alike rely on to adequately evaluate future potential investment options.</p><p>Moreover, the Release asserted that the recent rise of social media and celebrity attention received by digital assets poses additional challenges for investors and plan participants to separate the facts from the hype. When combined with a plan fiduciary’s decision to include cryptocurrency options on a (k) plan menu, according to the Release, the message effectively conveyed to plan participants is that “knowledgeable investment experts have approved the cryptocurrency option as a prudent option . . . [which can] easily lead plan participants astray and cause losses.”</p><ol><li><strong>Fiduciaries Face Non-Traditional Custodial and Recordkeeping Challenges</strong></li></ol><p>Unlike traditional plan assets that are held in trust or custodial accounts, DOL notes that cryptocurrencies generally exist as lines of computer code in a digital wallet. In addition to valuation and liquidity issues, cryptocurrencies “can be vulnerable to hackers and theft,” as well as loss from losing or forgetting a password. DOL contends these differences pose unprecedented challenges for fiduciaries charged with highly regulated custodial and recordkeeping requirements.</p><p>In a DOL blog post issued on the same day as the Release, blog author, Acting Assistant Secretary, Ali Khawar, provided further insight into why DOL considers these challenges so significant:</p><p>“The assets held in retirement plans, such as (k) plans, are essential to financial security in old age – covering living expenses, medical bills and so much more – and must be carefully protected.”</p><ol><li><strong>Experts Lack Industry Standard Valuation Models or Accounting Requirements</strong></li></ol><p>The Release expressed concerns about the reliability and accuracy of cryptocurrency valuations. Experts are still grappling with the complex and challenging task of solving <em>how</em> to value digital assets, and also admit that none of the existing proposed valuation models are as sound or academically defensible as the discounted cash flow analysis or interest and credit models that are traditionally used.</p><ol><li><strong>Regulatory Landscape is Unstable and Swiftly Evolving</strong></li></ol><p>Last, the Release warned that, as the rules and regulations governing cryptocurrency markets continue to evolve, some market participants could find themselves operating outside of existing regulatory frameworks or not complying with them. Fiduciaries who are considering whether to include cryptocurrency investment options, according to the Release, must include in their analysis an explanation of the possible application of regulatory requirements on issuance, investments, trading, or other activities, and the possible effects those requirements may have on participant investments in (k) plans. An example that is very similar to this highly talked about pending litigation was provided in the Release to illustrate possible risks in this area.</p><p><strong>A Word to Fiduciaries Who Have Already Allowed Cryptocurrency on the Investment Menu, Including Through Brokerage Windows</strong></p><p>In addition to outlining specific risks raised by cryptocurrency investments in (k) plans, the Release announced that DOL expects to conduct investigations specifically targeting plans that offer participant investments in cryptocurrencies and “<em>related products</em>.” Plan fiduciaries should expect to be questioned over how their actions aligned with their fiduciary duties of prudence and loyalty in light of the risks addressed in the Release.</p><p>These investigatory warnings also extend to plans and plan fiduciaries responsible for allowing cryptocurrency investments through (k) plan brokerage windows. This is concerning and may have broader implications because, as explained in a recently released report by the ERISA Advisory Council, most experts believe that plan fiduciaries do not have an obligation to monitor the underlying investments in a brokerage window, absent “extraordinary circumstances.” The Release’s reference suggests that DOL believes cryptocurrency investment options in brokerage windows may be the type of extraordinary circumstance that warrants a closer look at brokerage windows.</p><p><strong>Unanswered Questions</strong></p><p>After reading the Release, fiduciaries should also consider many unanswered questions in addition to the specific risks raised.</p><ol><li><strong>Can a “Sophisticated Fiduciary” Approve an Investment Option That Has a Small Allocation to Cryptocurrency?</strong></li></ol><p>In prior guidance involving private equity investments in (k) plans, DOL noted the investment risks but offered a path for fiduciaries to manage the risks. In that context, (see the  June Information Letter and Supplemental Statement issued in January ), although DOL expressed the need to exercise caution, DOL also stated that such potentially risky investment options could be included within a diversified investment option if approved by a “sophisticated fiduciary.” The Release raises “serious concerns” with “direct investments in cryptocurrencies,” as well as “other products whose value is tied to cryptocurrencies,” but it leaves open the question of whether, and to what extent, “sophisticated fiduciaries” could approve funds that include small allocations to cryptocurrency.</p><ol><li><strong>How Much Indirect Exposure to Cryptocurrency is Too Much?</strong></li></ol><p>As noted above, the Release targets not only “cryptocurrencies” but also “other products whose value is tied to cryptocurrencies.” Left unanswered is whether “other products” would include funds that have <em>any </em>exposure to cryptocurrency as opposed to exposure above a particular threshold.</p><p>For example, the June Information Letter provided that private equity must be a small component – perhaps not more than 15 percent – of a designated investment alternative to potentially be permissible in (k) plans. Is it possible, then, for a target date fund that invests in collective investment funds, one of which contains a very small percentage (less than 15 percent) of its assets in cryptocurrency, to be an acceptable “other product”? If not, it is possible that a number of diversified investment options could be swept into the broader “other” category. Fiduciaries should review whether any funds in their plans’ lineups have exposure to cryptocurrencies.</p><ol><li><strong>What About Defined Benefit Plans and Other Fund Types? </strong></li></ol><p>Finally, the Release specifically focuses solely on (k) plan investments in cryptocurrencies and related products. What about defined benefit plan investment funds? What about investments held by welfare benefit funds (VEBAs)? A number, albeit not all, of the five DOL concerns expressed in the Release apply similarly to these other types of plans; but the Release did not focus on those types of plans.</p><p>For now, plan sponsors and fiduciaries should keep an eye on new developments. If DOL does launch an investigatory program for cryptocurrency investments, it is possible that this guidance might take the form of audit questions for plan fiduciaries. Regardless, fiduciaries need to be ever vigilant in monitoring plan investments and making investment decisions.</p> Tags: (k) Plan,blockchain,brokerage window,Compliance Assistance Release No. ,cryptocurrency,defined benefit plan,defined contribution plan,Department of Labor,digital assets,DOL,Employee Benefits Security Administration,ERISA,fiduciary duty,investment funds,investments,plan fiduciary,SEC</div>Источник: [www.oldyorkcellars.com]</div> <div><h2>Use a Solo k to Buy Cryptocurrency</h2><div>5Minute Read <p>If you are self-employed, you can use the Solo k to buy cryptocurrency. The Solo k is a unique retirement plan designed for self-employed individuals and small business owners. Individuals who do not meet the eligibility to open a Solo (k) can still use a Self-Directed IRA to buy Cryptocurrency. </p><h3><strong>What is Cryptocurrency?</strong></h3><p>For a growing number of investors, cryptocurrency is not only the future of money. It&#;s an attractive and potentially profitable investment asset. At the time of writing this article (11/16/), Bitcoin has made a comeback. Currently, it is over $60,, the highest price for Bitcoin in 12 months. Bitcoin has become the public’s most visible and popular cryptocurrency and it&#;s among the oldest. (It first emerged in ). Over one year, the market capitalization for Bitcoin has increased enormously.</p><p>Like Bitcoin, Ethereum has also made substantial gains and hit record highs. The growing popularity and rising prices of Cryptocurrency has led many individuals to explore using retirement funds to invest in Cryptocurrency. </p><p>The process of buying cryptocurrency is still somewhat unclear for a lot of people. It&#;s not a stock or a traditional investment. For most people in the U.S., Gemini may be the easiest option to buy cryptocurrency. This includes the most popular:</p><figure><img width=

After verifying the account, you can add a number of payment methods. This includes credit or debit cards, U.S. bank accounts, or transfer wire funds.

Cryptocurrency transactions are not anonymous and it&#;s easy to identify the currency to a real-world identity.

Read More: Tips for Making an Investment with a Solo (k)

Mining

Bitcoin comes from the process of &#;mining.&#; Essentially, this uses your computer&#;s processing power to solve complex algorithms called &#;blocks.&#; You can buy and sell Bitcoin on an exchange, much like a physical currency exchange. This converts wealth from Bitcoin to U.S. dollars and other national currencies, back to dollars or Bitcoin. And that&#;s how you make money.

Tax-Treatment for Cryptocurrency with Non-Retirement Funds

Many people label Bitcoin as a “cryptocurrency.&#; However, from a federal income tax standpoint, Bitcoins and other cryptocurrency are not truly “currency.” On March 25, , the IRS issued Notice For the first time the IRS set forth a position on the taxation of virtual currencies, such as Bitcoins.

According to the IRS Notice, &#;Virtual currency is treated as property for U.S. federal tax purposes.&#; The Notice further stated, &#;General tax principles that apply to property transactions apply to transactions using virtual currency.&#;

Essentially, the IRS treats the income or gains from the sale of a virtual currency (such as Bitcoins) as a capital asset. This makes virtual currency subject to short-term (ordinary income tax rates). And if held greater than 12 months, long term capital gains tax rates. (15% or 20% tax rates based on income).

By treating bitcoins and other virtual currencies as property and not currency, the IRS is imposing extensive record-keeping rules &#; and significant taxes &#; on its use.

Benefits of a Self-Directed Solo k for Cryptocurrency

The Internal Revenue Code does not describe what a retirement plan can invest in, only what it cannot invest in. Internal Revenue Code Sections & prohibits Disqualified Persons from engaging in certain types of transactions. This includes the purchase of collectibles, life insurance (in the case of an IRA), as well as any transaction that directly or indirectly benefits a disqualified person.

Read More: Solo (k) Eligibility

Disqualified Persons

Disqualified Persons

The definition of a “disqualified person” extends into a variety of scenarios. However, it generally includes the Solo (k) Plan participant and his/her lineal descendants. This includes parents, children, spouse and daughter/son-in-law. It also includes any entities in which the plan participant or a disqualified person has a controlling equity or management interest.

Bitcoin and the Prohibited Transaction Rules

Cryptocurrency does not generally fall into any category of prohibited transactions. Therefore, is an allowable investment for a Solo k for Bitcoin, or Bitcoin (k).

The IRS tax treatment of virtual currency has created a favorable tax environment for retirement account investors. Usually, when a retirement account generates income or gains from the purchase/sale of a capital asset, the retirement account doesn&#;t pay tax on the transaction.

Taxes are deferred to the future when the retirement account holder taxes a distribution. Therefore, when you use retirement funds to invest in cryptocurrencies, such as Bitcoin, the investor can defer or eliminate (in the case of a Roth) any tax due from the investment.

Note:

Retirement account investors who have interest in mining Bitcoin versus trading may become subject to the Unrelated Business Taxable Income tax rules. This is if the &#;mining&#; constitutes a trade or business.

How to Use a Self-Directed Solo k Plan to Buy Cryptocurrency

When you work with IRA Financial Group to purchase cryptocurrency, like Bitcoin, the process is simple with a Bitcoin (k) (Solo k Plan for Bitcoin investments).

Solo (k) for Bitcoin

1. Confirm Eligibility

Confirm you are eligible to establish a Crypto (k). Essentially, this is a Solo (k) plan to buy cryptocurrency, like Bitcoin. You must be self-employed or have a small business with no full-time employees other than the owner(s) or owner(s) spouse(s).

2. Establish Account

Work with IRA Financial Group to establish an IRS approved self-directed Solo (k).

3. Open a Bank Account

Next, open a bank account for the Self-Directed Solo k Plan at a local bank or financial institution, such as Fidelity or Schwab. IRA Financial Group has relationships with most of the popular banks and financial institutions, so opening a bank account will be quick and easy.

4. Rollover Funds

Rollover of retirement funds, cash or in-kind, tax-free to the new self-directed Solo k Plan account. Note – a Roth IRA cannot roll into a Solo k plan.

Learn More:How to Complete a Solo (k) Rollover

5. Gain Checkbook Control

Because you&#;re trustee of the Solo k Plan, you have checkbook control over all assets/funds in the Solo k Plan to make cryptocurrency investments.

6. Earn Tax-free Gains

Since a (k) Plan is exempt from tax pursuant to Internal Revenue Code Section , all income and gains from the cryptocurrency investment will flow back to the (k) plan without tax.

Be Cautious with Your Crypto (k)

Cryptocurrency investments, such as Bitcoins, are risky and highly volatile. Any investor who has interest in learning more about Bitcoins should do their diligence and proceed with caution.

The IRA Financial Group will take care of the entire set-up of your Self-Directed Solo k Bitcoin Plan. We can handle the process by phone, email, fax, or mail. It typically takes between days to complete, but the timing is largely dependent on the custodian holding your retirement funds.

Our Self-Directed (k) experts and tax and ERISA attorneys are on site and can significantly reduce set-up time and cost. More importantly, each client of the IRA Financial Group receives a tax professional. This will further help you establish an IRS approved self-directed Solo k plan structure.

Note: 

It doesn&#;t matter what platform you choose to invest your retirement funds in cryptocurrencies. The important element is to understand the financial risks with such an investment. Cryptocurrency may be on an upward trend since Facebook announced the launch of its own cryptocurrency coin, Libra. However, cryptocurrency is still extremely risky and volatile. Investors must have the financial ability to bear the risks of a cryptocurrency investment, and the potential total loss of that investment.

Any Bitcoin (k) investor interested in using retirement funds to invest in cryptocurrencies should do their diligence, learn about virtual currency and its blockchain technology, and proceed with caution.

Get in Touch

Do you have questions about using your Solo k Plan for Bitcoin and/or other cryptocurrency? You can contact IRA Financial Group at Or speak with an on-site (k) specialist to answer your questions.

Did you know?

Because the IRS treats cryptocurrency, including Bitcoin and Ethereum, as propertyfor income tax purposes, you can buy virtual currency (cryptocurrency) with your Solo k. Contact our specialists today for more information.

Tagged alternative investments, bitcoin, Cryptocurrency

Источник: [www.oldyorkcellars.com]

Not Very Cryptic - DOL Expresses Skepticism Regarding (k) Investment in Cryptocurrency  

Yesterday, on March 10, , the U.S. Department of Labor (the "Department") issued Compliance Assistance Release (the "Release"), in which the Department "caution[ed] plan fiduciaries to exercise extreme care before they consider adding a cryptocurrency option to a (k) plan's investment menu for plan participants." The Release was motivated by the "marketing [of] investments in cryptocurrencies to (k) plans as potential investment options for plan participants."

While the Release does not establish any new legal principles, it would appear to set a skeptical tone regarding the appropriateness of cryptocurrency investment options under (k) (and similar participant-directed) plans ("Plans"). Thus, for example, the DOL stated:

At this early stage in the history of cryptocurrencies, the Department has serious concerns about the prudence of a fiduciary's decision to expose a (k) plan's participants to direct investments in cryptocurrencies, or other products whose value is tied to cryptocurrencies. These investments present significant risks and challenges to participants' retirement accounts, including significant risks of fraud, theft, and loss . . . 

Extreme volatility can have a devastating impact on participants, especially those approaching retirement and those with substantial allocations to cryptocurrency.

Cryptocurrencies are often promoted as innovative investments that offer investors unique potential for outsized profits. These investments can all too easily attract investments from inexpert plan participants with great expectations of high returns and little appreciation of the risks the investments pose to their retirement investments.

. . . When plan fiduciaries, charged with the duties of prudence and loyalty, choose to include a cryptocurrency option on a (k) plan's menu, they effectively tell the plan's participants that knowledgeable investment experts have approved the cryptocurrency option as a prudent option for plan participants.

Cryptocurrencies are not held like traditional plan assets in trust or custodial accounts, readily valued and available to pay benefits and plan expenses. . . .

. . . The Department is concerned about the reliability and accuracy of cryptocurrency valuations. . . .

. . . Rules and regulations governing the cryptocurrency markets may be evolving, and some market participants may be operating outside of existing regulatory frameworks or not complying with them. Fiduciaries who are considering whether to include a cryptocurrency investment option will have to include in their analysis how regulatory requirements may apply to issuance, investments, trading, or other activities and how those regulatory requirements might affect investments by participants in (k) plans. [An agency within the Department] expects to conduct an investigative program aimed at plans that offer participant investments in cryptocurrencies and related products, and to take appropriate action to protect the interests of plan participants and beneficiaries with respect to these investments. The plan fiduciaries responsible for overseeing such investment options or allowing such investments through brokerage windows should expect to be questioned about how they can square their actions with their duties of prudence and loyalty . . . .

While, as indicated above, the Release does not break any new legal ground, the Department seems clearly to be discouraging the inclusion of cryptocurrencies as investment options under Plans, at least at this juncture. It appears that, where the Department sees investment trends that are for whatever reason of concern to it, it issues authority with a denigrating tone regarding such trends - a recent example being the December 21, supplement to a prior information letter regarding investment in private equity under Plans, discussed by us here.

Plan fiduciaries and providers alike will need to decide for themselves whether and how to proceed with cryptocurrency investments under Plans in light of the Release. If you would like to discuss the Release, or any other aspect of possible investment by Plans in cryptocurrency, please contact any of the Dechert lawyers listed below or any Dechert lawyer with whom you regularly work.

Источник: [www.oldyorkcellars.com]

Use a Solo k to Buy Cryptocurrency

5Minute Read

If you are self-employed, bitcoin investment sites 401k, you can use the Solo k to buy cryptocurrency. The Solo k is a unique retirement plan designed for self-employed individuals and small business owners. Individuals who do not meet the eligibility to open a Solo (k) can still use a Self-Directed IRA bitcoin investment sites 401k buy Cryptocurrency.

What is Cryptocurrency?

For a growing number of investors, cryptocurrency is not only the future of money. It&#;s an attractive and potentially profitable investment asset. At the time of writing this article (11/16/), Bitcoin has made bitcoin investment sites 401k comeback. Currently, it is over $60, bitcoin investment sites 401k, the highest price for Bitcoin in 12 months. Bitcoin has become the public’s most visible and popular cryptocurrency and it&#;s among the oldest. (It first emerged in ). Over one year, the market capitalization for Bitcoin has increased enormously.

Like Bitcoin, Ethereum has also made substantial gains and hit record highs. The growing popularity and rising prices of Cryptocurrency has led many individuals to explore using retirement funds to invest in Cryptocurrency.

The process of buying cryptocurrency is still somewhat unclear for a lot of people. It&#;s not a stock or a traditional investment. For most people in the U.S., Gemini may be the easiest option to buy cryptocurrency. This includes the most popular:

Bitcoin Ethereum Litecoin

After verifying the bitcoin investment sites 401k, you can add a number of payment methods. This includes credit or debit cards, U.S. bank accounts, or transfer wire funds.

Cryptocurrency transactions are not anonymous and it&#;s easy to identify the currency to a real-world identity.

Read More: Tips for Making an Investment with a Solo (k)

Mining

Bitcoin comes from the process of &#;mining.&#; Essentially, this uses your computer&#;s processing power to solve complex algorithms called &#;blocks.&#; You can buy and sell Bitcoin on an exchange, bitcoin investment sites 401k, much like a bitcoin investment sites 401k currency exchange. This converts wealth from Bitcoin to U.S, bitcoin investment sites 401k. dollars and other national currencies, back to dollars or Bitcoin. And that&#;s how you make money.

Tax-Treatment for Cryptocurrency with Non-Retirement Funds

Many people label Bitcoin as a “cryptocurrency.&#; However, from a federal income tax standpoint, Bitcoins and other cryptocurrency are not truly “currency.” On March 25,the IRS issued Notice For the first time the IRS set forth a position on the taxation of virtual currencies, such as Bitcoins.

According to the IRS Notice, &#;Virtual currency is treated as property for U.S. federal tax purposes.&#; The Notice further stated, &#;General tax principles that apply to property transactions apply to transactions using virtual currency.&#;

Essentially, the IRS treats the income or gains from the sale of a virtual currency (such as Bitcoins) bitcoin investment sites 401k a capital asset. This makes virtual currency subject to short-term (ordinary income tax rates). And if held greater bitcoin investment sites 401k 12 months, long term capital gains tax rates. (15% or 20% tax rates based on income).

By treating bitcoins and other virtual currencies as property and not currency, bitcoin investment sites 401k, the IRS is imposing extensive record-keeping rules &#; and significant taxes &#; on its use.

Benefits of a Self-Directed Solo k for Cryptocurrency

The Internal Revenue Code does not describe what a retirement plan can invest in, only what it cannot invest in. Internal Revenue Code Sections & prohibits Disqualified Persons from engaging in certain types of transactions. This includes the purchase of collectibles, life insurance (in the case of an IRA), as well as any transaction that directly or indirectly benefits a disqualified person.

Read More: Solo (k) Eligibility

Disqualified Persons

Disqualified Persons

The definition of a “disqualified person” extends into a variety of scenarios. However, it generally includes the Solo (k) Plan participant and his/her lineal descendants, bitcoin investment sites 401k. This includes parents, children, spouse and daughter/son-in-law. It also includes any entities in which the plan participant or a disqualified person has a controlling equity or management interest.

Bitcoin and the Prohibited Transaction Rules

Cryptocurrency does not generally fall into any category of prohibited transactions. Therefore, is an allowable investment for a Solo k for Bitcoin, or Bitcoin (k).

The IRS tax treatment of virtual currency has created a favorable tax environment for retirement account investors. Usually, bitcoin investment sites 401k, when a retirement account generates income or gains from the purchase/sale of a capital asset, the retirement account doesn&#;t pay tax on the transaction.

Taxes are deferred to the future when the retirement account holder taxes a distribution. Therefore, when you use retirement funds to invest in cryptocurrencies, such as Bitcoin, the investor can defer or eliminate (in the case of a Roth) any tax due from the investment.

Note:

Retirement account investors who have interest in mining Bitcoin versus trading may become subject to the Unrelated Business Taxable Income tax rules. This is if the &#;mining&#; constitutes a trade or business.

How to Use a Self-Directed Solo k Plan to Buy Cryptocurrency

When you work with IRA Financial Group to purchase cryptocurrency, like Bitcoin, bitcoin investment sites 401k, the process is simple with a Bitcoin (k) (Solo k Plan for Bitcoin investments).

Solo (k) for Bitcoin

1. Confirm Eligibility

Confirm you are eligible to establish a Crypto (k). Essentially, this is a Solo (k) plan to buy cryptocurrency, like Bitcoin. You must be self-employed or have a small business with no full-time employees other than the owner(s) or owner(s) spouse(s).

2. Establish Account

Work with IRA Financial Group to establish an IRS approved self-directed Solo (k).

3. Open a Bank Account

Next, open a bank account for the Self-Directed Solo k Plan at a local bank or financial institution, such as Fidelity or Schwab. IRA Financial Group has relationships with most of the popular banks and financial institutions, so opening a bank account will be quick and easy.

4. Rollover Funds

Rollover of retirement funds, cash or in-kind, tax-free to the new self-directed Solo k Plan account. Note – bitcoin investment sites 401k Roth IRA cannot roll into a Solo k plan.

Learn More:How to Complete a Solo (k) Rollover

5. Gain Checkbook Control

Because you&#;re trustee of the Solo k Plan, you have checkbook control over all assets/funds in the Solo k Plan to make cryptocurrency investments.

6. Earn Tax-free Gains

Since a (k) Plan is exempt from tax pursuant to Internal Revenue Code Sectionall income and gains from the cryptocurrency investment will flow back to the (k) plan without tax.

Be Cautious with Your Crypto (k)

Cryptocurrency investments, such as Bitcoins, are risky and highly volatile. Any investor who has interest in learning more about Bitcoins should do their diligence and proceed with caution.

The IRA Financial Group will take care of the entire set-up of your Self-Directed Solo k Bitcoin Plan. We can handle the process by phone, email, fax, or mail. It typically takes between days to complete, but the timing is largely dependent on the custodian holding your retirement funds.

Our Self-Directed (k) experts and tax and ERISA attorneys are on site and can significantly reduce set-up time and cost. More importantly, each client of the IRA Financial Group receives a tax professional. This will further help you establish an IRS approved self-directed Solo k plan structure.

Note: 

It doesn&#;t matter what platform you choose to invest your retirement funds in cryptocurrencies. The important element is to understand the financial risks with such an investment. Cryptocurrency may be on an upward trend since Facebook announced the launch of its own cryptocurrency coin, Libra. However, cryptocurrency is still extremely risky and volatile. Investors must have the financial ability to bear the risks of a cryptocurrency investment, bitcoin investment sites 401k, and the potential total loss of that investment.

Any Bitcoin (k) investor interested in using retirement funds to invest in cryptocurrencies should do their diligence, learn about virtual currency and its blockchain technology, and proceed with caution.

Get in Touch

Do you have questions about using your Solo k Plan for Bitcoin and/or other cryptocurrency? You can contact IRA Financial Group at Or speak with an on-site (k) specialist to answer your questions.

Did you know?

Because the IRS treats cryptocurrency, including Bitcoin and Ethereum, as propertyfor income tax purposes, you can buy virtual currency (cryptocurrency) with your Solo k. Contact our specialists today for more information.

Tagged alternative investments, bitcoin, Cryptocurrency

Источник: [www.oldyorkcellars.com]
How to Buy Bitcoin with a (k): What You Need to Know" width="" height="">Investing In Bitcoin With Your (k)

Even if you don’t become a bitcoin millionaire, right now might prove to be an excellent time to buy bitcoin with your (k) or standard IRA. If you&#;re asking yourself, &#;Can I invest my (k) in bitcoin?&#; the answer is, well, maybe. It depends on your situation, so read on to learn more.

This article will explain some of the eligibility requirements to purchase bitcoin with your (k) funds by moving it into a Bitcoin IRA, show you the benefits of making this move, and describe the three steps that bitcoin investment sites 401k into getting started.

Making an investment in bitcoin (one of more than 1, cryptocurrencies) has a number of benefits for your retirement that standard asset classes can&#;t match.

By investing your (k) savings into bitcoin (which can be achieved by converting your retirement plan into a self-directed IRA), you gain a huge amount of freedom of choice. That&#;s because you&#;ll be able to select from more options for your retirement plan than the conventional investment choices that are usually available in the market.

But there are also a number of other details to consider before deciding to roll over your (k) into a Bitcoin investment sites 401k IRA. Self-directed IRAs (SDIRAs) are a relatively unknown how do the creators of bitcoin make money of IRAs that unlock access to asset classes that sometimes have extraordinary growth potential. So, you should fully understand everything there is to know about this unique opportunity before making a decision.

Finally, because most people don&#;t fully understand how to get started transferring their (k) savings into digital currency such as bitcoin core (the original bitcoin), bitcoin cash, Ethereum, or Litecoin, this article will explain that as well.

To learn more, keep reading below, or watch the video here:

More People Than Ever Are Investing (k) Savings in Bitcoin

Here are seven reasons why.

  1. Get in on the ground floor of &#;the next big thing,&#; a major disruption of the central banking system. Bitcoin and other cryptocurrencies represent one of the most innovative ideas of the 21st century. You still have time to reap the investment advantages and potentially gain wealth.
  2. You can leverage tax-deferred personal property status by investing (k) savings in a Bitcoin IRA. Thanks to the IRS Noticedigital currency such as bitcoin is treated as personal www.oldyorkcellars.com you accrue can be retained tax-free until you take a distribution. But you also have an enormous advantage when you buy bitcoin for your IRA and sell it later while keeping your funds within your www.oldyorkcellars.com this scenario, you can reinvest your capital into any IRA-eligible asset and still get tax-deferred benefits. These assets can include stocks, bonds, mutual funds, ETFs (exchange traded funds), precious metals, bitcoin investment sites 401k, private equity, certain types of real estate, and more.
  3. You can further diversify your retirement plan by rolling part of it into a Bitcoin IRA. As you probably know, when it comes to investments, you should never put all of your eggs in one basket. By leveraging this new asset class, you can expand and protect your retirement investments.
  4. You get to leverage the power of the blockchain with fast, secure, peer-to-peer confirmation and mediation. Bitcoin works directly from person to person, with percent, secure blockchain platform software that conducts the transaction. This allows you to remove the &#;middle men&#; like governments and banks, and take back control of your retirement.
  5. You can protect part of your retirement savingsfrom inflation. Some digital currencies (including bitcoin) have a hard limit on how many tokens are available. All cryptocurrencies become harder to get as supply increases. This is called adaptive scaling. Unlike easy-to-get fiat money that is printed on demand, a Bitcoin IRA allows you to hedge your savings against inflation.
  6. You can take control of the funds in your old (k), so it&#;s not under the influence of the central bank policies. Cryptocurrencies like bitcoin don&#;t rely on the performance of our central banking system. They are decentralized, so they don&#;t have a controlling entity that the money flows through. This means this part of your retirement funds cannot be manipulated. Governments and banks can&#;t interfere.
  7. Hedge against a &#;stock bubble&#; that might turn your retirement planinto rubble. Roughly every 6 to 10 years, the market price corrects for overvalued stocks. If you don&#;t have money in the right places, your retirement savings could suffer the consequences, bitcoin investment sites 401k. As one of the things that you can do to avoid this, roll some of your (k) into a Bitcoin IRA to protect yourself.

Before you can take advantage of these rollover benefits, there are specific details you need to know, and three steps you must take.

Buy Bitcoin with Your (k) Savings or Standard IRA

In as little as a few days from now, you can convert your (k) savings to buy bitcoin.

But most (k) programs don&#;t allow the direct purchase of digital currency. So the easiest and quickest way to get the benefits we&#;ve listed above is to use a self-directed Digital IRA.

&#;Self-directed&#; means you&#;re in charge. While that may sound challenging, it&#;s really simple. Plus, you get to maintain complete control of your investments. On top of that, IRS guidelines allow these sorts of IRAs to invest in a complete assortment of different assets, including bitcoin. They can include gold, silver, real estate, private equity, and more.

Make Sure that You&#;re Eligible

The general rule of thumb is that you established your (k) as a full-time employee from a previous employer, bitcoin investment sites 401k, or you are more than years old, bitcoin investment sites 401k. Other eligibility requirements can vary, depending on the type of retirement plan you have, such as a Roth IRA, (b), and Thrift Savings Plan (TSP).

Please note, the rules dictating eligibility to move a (k) to an IRA aren&#;t always crystal clear and can vary from person to person. If you are confused or unsure of your own eligibility, please contact BitIRA today for a complimentary consultation.

We have a team of IRA Specialists, who are well-versed in the rules of (k)-to-Bitcoin IRA rollovers. If you make a bitcoin investment for your SDIRA, old school runescape thieving money making can assist you with the entire transfer process to make it quick and easy. However, please note that there is no obligation for you to take any action after your consultation.

Here are the three steps to take to convert your (k) savings into bitcoin:

  1. You open and fund a self-directed Digital IRA with a qualified custodian, so you&#;ll be able to start the process of transferring your (k) savings to a bitcoin-based retirement plan. In order to set up this new account, our IRA Specialists can complete as much of the paperwork as you&#;d like; we&#;ll adjust to your level of comfort. With BitIRA, your new custodian will be Equity Trust Company (ETC), a licensed trust company with a specific focus on self-directed IRAs. Their expense rates are among the most competitive in the industry, especially as it relates to Bitcoin IRAs.
  2. BitIRA works with your custodian and our bitcoin exchange partner Genesis to set up bitcoin investment sites 401k fund your account. You’ll receive credentials to trade your new digital currency assets as you see fit. Because Genesis oversees one bitcoin investment sites 401k the largest global networks of trading partners in the cryptocurrency market, you can buy and sell bitcoin with the confidence of stable prices and extremely fast transactions.
  3. Your bitcoinwill be stored in a digital or bitcoin wallet via our proprietary solution, the world&#;s first fully-insured cold storage wallet for digital currency IRAs, bitcoin investment sites 401k. Simply bitcoin investment sites 401k, there is no more secure option for storing cryptocurrencies in your IRA.

To learn even more, read about the full process of rolling over a (k) to a Bitcoin IRA, bitcoin investment sites 401k. To learn about the relationships between bitcoin prices, value, and technology, read our bitcoin IRA backgrounder.

How to Buy Bitcoin With a (k)

The team bitcoin investor ervaringen plus BitIRA has been helping Americans purchase alternative assets for their IRAs for years. We are fully prepared to help you convert your (k) savings to bitcoin quickly and easily.

Contact us today to get started. First, your Digital Currency Specialist will answer all of your questions. Frequent questions that they can answer include:

  • How is a Bitcoin IRA IRS-compliant?
  • Which digital coins can I purchase for my IRA?
  • Can I transfer retirement accounts beside a (k)?
  • What are the fees, and what do they cover?
  • How do I know that my cryptocurrency will be secure?

Then, your Digital Currency Specialist can help you complete paperwork, oversee rollovers, explain asset options, assist with contributions or distributions, offer ongoing support… and a whole lot more.

For bitcoin market and product news, check out our blockchain blog.

To take the first step in converting your (k) savings to bitcoin in a digital currency IRA, contact us bitcoin investment sites 401k [www.oldyorkcellars.com]

Our Blog

Bitcoin, along with other digital currencies, continue to take the financial world by storm. Rising both in popularity and demand, cryptocurrencies are becoming the can’t-miss investment opportunity of the digital era. With the value of Bitcoin recently surpassing k in Januarywe think it’s about time the financial services industry has a serious discussion around adding Bitcoin - and other cryptocurrencies - to the long list of investment options in the average (k) plan.

Background on Bitcoin

Over the past decade, Bitcoin has consistently been a hot topic in the financial services industry, bitcoin investment sites 401k. Since it’s creation inBitcoin has been known for its volatility, with prices soaring one day then plummeting the next. Cryptocurrencies may be unpredictable, but the long-term gains are undeniable, bitcoin investment sites 401k. It’s almost hard to imagine that inBitcoin was trading for a mere $ per coin. Flashforward to February 8,and Bitcoin was changing hands at a jaw-dropping $47, To put that into perspective, if a person invested $1 in bitcoin in , it would be worth well over $k today.

Is Bitcoin an investment option in retirement plans?

When planning for retirement, bitcoin investment sites 401k, it’s important to take a birds-eye approach and consider all the options when developing an investment strategy. That said, incorporating cryptocurrencies like Bitcoin in a traditional retirement account hasn’t even been an option on the table until recently. Due to the complex bitcoin investment sites 401k of retirement plan design, most retirement firms haven’t had the financial, technological, and legal capabilities needed to present these types of options to their clients. However, with the development of the world’s first Bitcoin (k) plan, companies that work with Leading Retirement Solutions are now able to add digital assets bitcoin investment sites 401k Bitcoin to their nontraditional investment options.

While Bitcoin may be considered a volatile investment, the long-term returns are more than evident. It’s important to acknowledge that prior to about years ago, the concept of digital currency was essentially incomprehensible to the average person. Like all revolutionary technologies, cryptocurrencies simply required time to be familiarized by the public.

“Bitcoin has matured — though it's still in an early adoption phase — and now offers significant long-term value.” -CNN

Why should employers incorporate Bitcoin in their employee benefits package?

As a business owner, you want to design a retirement plan that optimizes the benefits for both you and your employees. A (k) plan that is capable of incorporating nontraditional investments like Bitcoin simply expands potential growth opportunities. Obviously, not everyone is looking to bet on Bitcoin, but at least having the option available carries significant weight for employees.

Another benefit to investing in Bitcoin through a (k) are the tax incentives. Due to IRS official guidance on the tax treatment of Bitcoin in as property, many already had access to Bitcoin IRAs, but few were offered a Bitcoin (k) plan. With the Leading Bitcoin (k), companies can offer employees the ability to invest traditional or Roth (k) dollars into Bitcoin, bitcoin investment sites 401k. For those that do not know, a traditional (k) allows pre-tax dollar investments with deferrals on income taxes until withdrawal and a Roth (k) allows post-tax dollar investments with no tax obligations on capital gains for qualified withdrawals.

The retirement plan administration professionals at Leading Retirement Solutions are industry experts in nontraditional investment strategies. Like many other nontraditional investments, Bitcoin can be associated with significant legal risk if not implemented into a retirement plan correctly. To avoid facing potential legal repercussions, it’s extremely important to consult a qualified retirement plan administrator, before integrating digital bitcoin investment sites 401k like Bitcoin into your retirement plan. Companies like LRS ensure Department of Labor and IRS compliance. Once these accounts are created, your (k) Plan is ready to go and can be funded on your next pay period and with rollovers/transfers from old retirement accounts, including IRAs, (k), (b), pension plans, and more!

As bitcoin investment sites 401k continue to navigate through the digital age, conversations regarding Bitcoin and other digital assets are bitcoin investment sites 401k to continue. Why not innovate ahead of the curve and create an employee benefit plan that keeps up with the latest market trends?

For more tips and information regarding retirement plans, contact us.

Connect with us on Facebook, LinkedIn, and Twitter!

Источник: [www.oldyorkcellars.com]

Rolling over your (k) to bitcoin - step by step guide <div><h2> Not Very Cryptic - DOL Expresses Skepticism Regarding (k) Investment in Cryptocurrency <span>   </span> </h2><div><p>Yesterday, on March 10,the U.S. Department of Labor (the "Department") issued Compliance Assistance <b>Bitcoin investment sites 401k</b> (the "Release"), in which the Department "caution[ed] plan fiduciaries to exercise extreme care before they consider adding a cryptocurrency option to a (k) plan's <i>bitcoin investment sites 401k</i> menu for plan participants." The Release was motivated by the "marketing [of] investments in cryptocurrencies to (k) plans as potential investment options for plan participants."</p><p>While the Release does not establish any new legal principles, it would appear to set a skeptical tone regarding the appropriateness of cryptocurrency investment options under (k) (and similar participant-directed) plans ("Plans"). Thus, for example, the DOL stated:<br></p><p>At this early stage in the history of cryptocurrencies, the Department has serious concerns about the prudence of a fiduciary's decision to expose a (k) plan's participants to direct investments in cryptocurrencies, <i>bitcoin investment sites 401k</i>, or other products whose value is tied to cryptocurrencies. These investments present significant risks and challenges to participants' retirement accounts, including significant risks of fraud, theft, and loss. . . <br><br> Extreme volatility can have <i>bitcoin investment sites 401k</i> devastating impact on participants, especially those approaching retirement and those <i>bitcoin investment sites 401k</i> substantial allocations to cryptocurrency.<br><br> Cryptocurrencies are often promoted as innovative investments that offer investors unique potential for outsized profits. These investments can all too easily attract investments from inexpert plan participants with great expectations of high returns and little appreciation of the risks the investments pose to their retirement investments.<br><br>. . When plan fiduciaries, charged with the duties of prudence and loyalty, choose to include a cryptocurrency option on a (k) plan's menu, they effectively tell the plan's participants that knowledgeable investment experts have approved the cryptocurrency option <b>bitcoin investment sites 401k</b> a prudent option for plan participants.<br><br> Cryptocurrencies are not held like traditional plan assets in trust or custodial accounts, readily <i>bitcoin investment sites 401k</i> and available to pay benefits and plan expenses. . .<br><br>. . The Department is concerned about the reliability and accuracy of cryptocurrency valuations. . .<br><br>. . Rules and regulations governing the cryptocurrency markets may be evolving, and some market participants may be operating outside of existing regulatory frameworks or not complying with them. Fiduciaries who are considering whether to include a cryptocurrency investment option will have to include in their analysis how regulatory requirements may apply to issuance, investments, trading, or other activities and how those regulatory requirements might affect investments by participants in (k) plans. [An agency within the Department] expects to conduct an investigative program aimed at plans that offer participant investments in cryptocurrencies and related products, and to take appropriate action to protect the interests of plan participants and beneficiaries with respect to these investments. The plan fiduciaries responsible for overseeing such investment options or allowing such investments through brokerage windows should expect to be <b>bitcoin investment sites 401k</b> about how they can square their actions with their duties of prudence and loyalty. . .<br></p><p>While, as indicated above, the Release does not break any new legal ground, the Department seems clearly to be discouraging the inclusion of cryptocurrencies as investment options under Plans, at least at this juncture. It appears that, where the Department sees investment trends that are for whatever reason of concern to it, it issues authority with a denigrating tone regarding such trends - a recent example being the December 21, supplement to a prior information letter regarding investment in private equity under Plans, discussed by us here.</p><p>Plan fiduciaries and providers alike will need to decide for themselves whether and how to proceed with cryptocurrency investments under Plans in light of the Release. If you would like to discuss the Release, <b>bitcoin investment sites 401k</b>, <b>bitcoin investment sites 401k</b> any other aspect of possible investment by Plans in cryptocurrency, please contact any of the Dechert lawyers listed below or any Dechert lawyer with whom you regularly work.<br></p></div>Источник: [www.oldyorkcellars.com]</div> <div><div><p>Kryptonite is a fictional substance that causes the mighty Superman to lose all his strength. According to a recent release from the U.S. Department of Labor Employee Benefits Security Administration (“DOL”), cryptocurrency might carry similar dangers for otherwise strong and healthy (k) plan accounts. That is, in DOL’s view, the <i>bitcoin investment sites 401k</i> of cryptocurrency in (k) plans may prove to be just as fictional as kryptonite, thereby causing significant risks of losses for retirement security.</p><p>On March 10,DOL issued Compliance Assistance Release No. (the “<u>Release</u>”) to caution plan fiduciaries to exercise extreme care before considering whether to include investment options like cryptocurrency as part of a (k) plan’s investment menu. In so doing, DOL raised five key concerns associated with offering these types of investment options.</p><p><strong>DOL’s 5 Reasons Why Cryptocurrencies Might be Like “Crypto-nite” to Participant Retirement Accounts:</strong></p><ol><li><strong>Digital Assets Are Highly Speculative and Volatile</strong></li></ol><p>After noting that the SEC has also warned of the highly speculative nature of cryptocurrency, DOL cautioned that the extreme price volatility of cryptocurrency investments can have a devastating impact on participants with significant allocations to cryptocurrency. According to DOL, this volatility might be attributable to the many uncertainties surrounding the valuation process, fictitious trading practices, and widely published reports of theft and fraud, among other factors.</p><ol><li><strong>Obstacles Inhibit Participants From Making Informed Decisions</strong></li></ol><p>The Release noted that cryptocurrencies are often presented to investors as “innovative investments” that provide <i>bitcoin investment sites 401k</i> potential for outsized profits;” resulting in participants having high return expectations with little appreciation for the unique risks and volatility associated with cryptocurrencies. DOL also pointed out that these investments do not have the types of traditional data that novice and expert investors alike rely on to adequately evaluate future potential investment options.</p><p>Moreover, the Release asserted that the recent rise of social media and celebrity attention received by digital assets poses additional challenges for investors and plan participants to separate the facts from the hype. When combined with a plan fiduciary’s decision to include cryptocurrency options on a (k) plan menu, <b>bitcoin investment sites 401k</b>, according to the Release, the message effectively conveyed to plan participants is that “knowledgeable investment experts have approved the cryptocurrency option as a prudent option. . [which can] easily lead plan participants astray and cause losses.”</p><ol><li><strong>Fiduciaries Face Non-Traditional Custodial and Recordkeeping Challenges</strong></li></ol><p>Unlike traditional plan <a href=bitcoin investors forum definition that are held in trust or custodial accounts, DOL notes that cryptocurrencies generally exist as lines of computer code in a digital wallet. In addition to valuation and liquidity issues, bitcoin investment sites 401k, cryptocurrencies “can be vulnerable to hackers and theft,” as well as loss from losing or forgetting a password, bitcoin investment sites 401k. DOL contends these differences pose unprecedented challenges for fiduciaries charged with highly regulated custodial and recordkeeping requirements.

In a DOL blog post issued on the same day as the Release, blog author, Acting Assistant Secretary, Ali Khawar, provided further insight into why DOL considers these challenges so significant:

“The assets held in bitcoin investment sites 401k plans, such as (k) plans, are essential to financial security in old age – covering living expenses, medical bills and so much more – and must be carefully protected.”

  1. Experts Lack Industry Standard Valuation Models or Accounting Requirements

The Release expressed concerns about the reliability and accuracy of cryptocurrency valuations. Experts are still grappling with the complex and challenging task of solving how to value digital assets, and also admit that none of the existing wie kann man schnell geld verdienen mit 13 valuation models are as sound bitcoin investment sites 401k academically defensible as the discounted cash flow analysis or interest and credit models that are traditionally used.

  1. Regulatory Landscape is Unstable and Swiftly Evolving

Last, the Release warned that, as the rules and regulations governing cryptocurrency markets continue to evolve, some market participants could find themselves operating outside of existing regulatory frameworks or not complying with them. Fiduciaries who are considering whether to include cryptocurrency investment options, according to the Release, must include in their analysis an explanation of the possible application of regulatory requirements on issuance, bitcoin investment sites 401k, investments, trading, or other activities, and the bitcoin investment sites 401k effects those requirements may have on participant investments in (k) plans. An example that is very similar to this highly talked about pending litigation was provided in the Release to illustrate possible risks in this area.

A Word to Fiduciaries Who Have Already Allowed Cryptocurrency on the Investment Menu, Including Through Brokerage Windows

In addition to outlining specific risks raised by cryptocurrency investments in (k) plans, the Release announced that DOL expects to conduct investigations specifically targeting plans that offer participant investments in cryptocurrencies and “related products.” Plan fiduciaries should expect to be questioned over how their actions aligned with their fiduciary duties of prudence and loyalty in light of the risks addressed in the Release.

These investigatory warnings also extend to plans and plan fiduciaries responsible for allowing cryptocurrency investments through (k) plan brokerage windows. This is concerning and may have broader implications because, as explained in a recently released report by the ERISA Advisory Council, most experts believe that plan fiduciaries do not have an obligation to bitcoin investment sites 401k the underlying investments in a brokerage window, absent “extraordinary circumstances.” The Release’s reference suggests that DOL believes cryptocurrency investment options in brokerage windows may be the type of extraordinary circumstance that warrants a closer look at brokerage windows.

Unanswered Questions

After reading the Release, fiduciaries should also consider many unanswered questions in addition to the specific risks raised.

  1. Can a “Sophisticated Fiduciary” Approve an Investment Option That Has a Small Allocation to Cryptocurrency?

In prior guidance involving private equity investments in (k) plans, DOL noted the investment risks but offered a path for fiduciaries to manage the risks. In that context, (see the  June Information Letter and Supplemental Statement issued in January ), although DOL expressed the need to exercise caution, DOL also stated that such potentially risky investment options could be included within a diversified investment option if approved by a “sophisticated fiduciary.” The Release raises “serious concerns” with “direct investments in cryptocurrencies,” as well as “other products whose value is tied to cryptocurrencies,” but it leaves open the question of whether, and to what extent, “sophisticated fiduciaries” could approve funds that include small allocations to cryptocurrency.

  1. How Much Indirect Exposure to Cryptocurrency is Too Much?

As noted above, the Release targets not only “cryptocurrencies” but also “other products whose value is tied to cryptocurrencies.” Left unanswered is whether “other products” would include funds that have any exposure to cryptocurrency as opposed to exposure above a particular threshold.

For example, the June Information Letter provided that private equity must be a bitcoin investment sites 401k component – perhaps not more than 15 percent – of a designated investment alternative to potentially be permissible in (k) plans. Is it possible, then, for a target date fund that invests in collective investment funds, one bitcoin investment sites 401k which contains a very small percentage (less than 15 percent) of its assets in cryptocurrency, to be an acceptable “other product”? If not, it is possible that a number of diversified investment options could be swept into the broader “other” category. Fiduciaries should review whether any funds in their plans’ lineups have exposure to cryptocurrencies.

  1. What About Defined Benefit Plans and Other Fund Types?

Finally, the Release specifically focuses solely on (k) plan investments in cryptocurrencies and related products. What about defined benefit plan investment funds? What about investments held by welfare benefit funds (VEBAs)? A number, albeit not all, of the five DOL concerns expressed in the Release apply similarly to these other types of plans; but the Release did not focus on those types of plans.

For now, plan sponsors and fiduciaries should keep an eye on new developments. If DOL does launch an investigatory program for cryptocurrency investments, it is possible that this guidance might take the form of audit questions for plan fiduciaries. Regardless, fiduciaries need to be ever vigilant in monitoring plan investments and making investment decisions.

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Could Crypto Be Coming to Your (k)?

It's hard to look at the news these days without reading something about cryptocurrency. Many investors are putting money into cryptocurrency in an effort to join the ranks of those who have gotten rich by trading in digital coins. And soon, you might have the option to invest in cryptocurrency not just for the near term, bitcoin investment sites 401k, but for your retirement.

Will (k)s start to include cryptocurrency?

Today's (k) plans don't include the option to invest in cryptocurrency. But that could be changing.

ForUsAll Inc., bitcoin investment sites 401k, a (k) provider, announced earlier this month that it's striking a deal with leading crypto exchange Coinbase Global( COIN % ) that will allow plan participants to invest up to 5% of their (k) contributions in cryptocurrencies like Bitcoin( BTC % ).

Bitcoin logo on graphic screen

Image source: Getty Images.

Now just because one (k) provider will be offering cryptocurrency doesn't mean every provider will immediately follow suit. But given the popularity of investments like Bitcoin, there's a good chance more will begin to at least consider bringing cryptocurrency into the fold.

Should you invest your retirement savings in cryptocurrency?

Of course, whether it pays to add cryptocurrency to your (k) is a different story. Though a lot of people have made money with cryptocurrency, it's also a very volatile, speculative investment.

Ultimately, the long-term value of digital currencies like Bitcoin will depend on how widely accepted they become as a form of payment. Right now, you can't exactly walk into your average supermarket and pay for groceries with cryptocurrency.

Because it's hard to predict what the future holds for Bitcoin and other digital currencies, it can be a risky investment for your retirement -- namely because there's a good chance it will be worth absolutely nothing in 10, 20, or 30 years.

In fact, a lot of people who buy cryptocurrency do so on a short-term basis because they know its future is shaky. But your (k) should be centered on a long-term wealth-building strategy, especially if you're relatively young and you're not planning to bring your career to an end for many years.

Now bitcoin investment sites 401k is worth reiterating that ForUsAll only plans to let plan participants put up to 5% of their money into cryptocurrency. And that alone speaks to its speculative nature. It's also a responsible way to introduce cryptocurrency investing to people who may be excited to dabble in it, but don't really know much about it other than it's in the news a lot.

Be careful with crypto

Even if cryptocurrency doesn't make its way into your retirement plan anytime soon, you can still invest non-retirement funds in it. But be careful.

While there's no such thing as a risk-free investment, cryptocurrency is a lot riskier than putting money into stocks, which have a proven history of gaining value over time. Bitcoin, by contrast, is only a little more than a decade old, and we don't know how much staying power it or other digital currencies have.

In fact, the 5% threshold mentioned earlier might be a good start if you're going to get into cryptocurrency at all. Easing your way in is a better bet than going all in -- and running the risk of losing all of your money in the process.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, bitcoin investment sites 401k.
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