How it Works - BitIRA

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How Bitcoin IRAs Work

A Simple Primer on the Process

At first glance, getting started with a Digital IRA can seem complicated. But don’t let the process overwhelm you.

And if you already have a retirement account…

Don’t worry. You can actually keep all your existing retirement funds inside your Digital IRA with an account rollover – with zero penalties or distributions in nearly all cases. You can also open a new Digital IRA and keep your existing account separate, if you prefer.

We’ll explain exactly how to set up your Digital IRA below.

But before that, keep in mind that your Digital Currency Specialist, with the support of BitIRA’s in-house IRA Department, can guide you each step of the way, including:

Completing Paperwork
Overseeing Rollovers
Explaining Asset Options
Ensuring Security
Assisting with Contributions & Distributions
Offering Ongoing Support

Our team has years of experience with placing alternative assets into IRAs, so we can ensure as smooth a process as possible.

With the confidence of having BitIRA as your personal partner, here’s the simple process for starting your Digital IRA…

1. Create Your Digital IRA Account

Digital IRAs are a type of “self-directed” retirement account. That means you accept full control over the investments in your account, but a qualified custodian must still legally handle your account’s administration.

BitIRA has partnered with Equity Trust Company, a leading custodian of self-directed IRAs, to manage your account and prepare all the necessary documentation for this crucial first step.

After you provide your Digital Currency Specialist with a few key pieces of documentation, the team at BitIRA will complete the required paperwork and administrative tasks to open your new account. Beyond your input on some questions, plus your approval and signature, you hardly have to do any work. Most new accounts are ready within a few weeks or less.

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2. Initiate Funding &
Asset Rollovers

With your new account set up, it’s ready to accept funding and receive asset rollovers from your existing accounts. Your Digital Currency Specialist, in coordination with our IRA Department, will work with Equity Trust and your old custodian to ensure that your initial funding and asset transfers move over seamlessly, while watching carefully to prevent penalties and hidden costs.

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3. Connect Wallet & Exchange

Digital currencies for your new IRA account are bought and sold on an exchange, and in storage the rest of the time. BitIRA has partnered with Galaxy Digital, an industry leader as our partner trading exchange. With Galaxy, you get the trust and transparency of a publicly traded company. Security, stability and liquidity are top priorities for Galaxy.

Your Digital Currency Specialist will configure access to our corporate account with our exchange partner, Galaxy Digital, which has provided high-speed trades and reliable, stable quotes since 2018. You’ll enjoy the same service level as heavyweight clients with $10 million+ in assets on every trade, every day.

Here’s why BitIRA is “The World’s Most Secure Digital Currency IRA.” Your retirement assets are not only insured while in storage, but also throughout the transaction (that’s why we call it “end-to-end insurance”). We have multiple insurance policies in place through our partners to ensure protection for your digital assets across the board. There’s simply no safer, more secure way to trade and store cryptocurrencies.

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4. Begin Trading & Investing

The setup process is complete! Now you’re free to start purchasing digital currencies for placement in your IRA. You can view your account holdings 24/7 with our wallet lookup tool, and your Digital Currency Specialist will remain available to execute orders within your account.

Are you ready to take the first step toward starting your Digital IRA? Contact BitIRA to learn how you can start leveraging digital currencies inside your IRA today. One of our Digital Currency Specialists will go over all the details, answer any questions, and explain the opportunities currently available.

Benefits of BitIRA?

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Greater Asset Control

You choose where your money goes — not the market, not the banks. Digital IRAs let you take control of your retirement strategy.

Future-Focused Investing

Digital currencies offer long-term potential in a fast-changing economy, helping you stay ahead of traditional financial trends.

Simple, Guided Setup

No guesswork needed. Our team makes it easy to open, fund, and manage your Digital IRA — even if you’re new to crypto.

Frequently Asked Questions

Are the Digital Currency IRAs created by BitIRA IRS-compliant?

Absolutely! Cryptocurrencies have been eligible to place into IRAs since 2014, when the IRS issued Notice 2014-21, which declared virtual currency (such as Bitcoin) as personal property for taxation purposes. Although the tax agency did not explicitly state that Bitcoin could be placed into an IRA – the IRS never makes such official proclamations – this ruling made digital currency eligible for such use under the rules that govern self-directed IRAs.

BitIRA has set up a process to ensure that the purchase of your digital currency strictly adheres to the guidelines of self-directed IRAs. Our IRA Specialists can help you roll over your IRA or 401(k) to your new custodian without incurring any penalties. Once your account is set up, we ensure IRA compliance each step of the way, including to purchase your Bitcoin and then to store it with a digital currency wallet.

Rest assured that your new Digital Currency IRA follows every rule imaginable in order to remain compliant with IRS guidelines and regulations that pertain to the tax benefits that come with IRAs.

Is my current retirement account eligible to rollover to a Digital Currency IRA?