Is a Bitcoin IRA Right For Your Retirement Plan?
It's pretty difficult to ignore the cryptocurrency craze -- despite the well-publicized price volatility. More now than ever, people are trying to find new ways to incorporate Bitcoin (CRYPTO: BTC) into their respective retirement plans. Recent IRA offerings seek to meet this demand.
Enter the Bitcoin IRA. The Bitcoin IRA provides crypto access to investors trying to diversify and tax-optimize their portfolios; whether this is a good decision remains to be seen. Here, we'll explore the reasons you might consider -- or entirely avoid -- the Bitcoin IRA.
One of the big reasons people look to roll money into a Bitcoin IRA is related to tax management. If you're a believer in Bitcoin, holding it in a tax-advantaged space like a 401(k) or an IRA is likely very important to you. Essentially, Bitcoin and other cryptocurrencies held in traditional or Roth IRAs are exempt from capital gains taxes at the point of sale. This means you can trade freely in either type of crypto IRA without needing to worry about tax charges.
Source Fool.com
