Expand Your Retirement Portfolio with Bitcoin Roth IRAs

Expand Your Retirement Portfolio with Bitcoin Roth IRAs

The best IRA to choose when investing in crypto is a Roth IRA as you can withdraw the money, upon retirement, without paying a tax. The investments you make are taxed initially. However, you won’t pay taxes on any capital gains.

What’s in Your Retirement Portfolio?

That is why shrewd investors are expanding their retirement holdings today and investing in IRAs or retirement accounts that feature both stocks and bonds and alternative investments such as crypto, precious metals, artwork, or real estate. Therefore, you can leverage your holdings and make quite a sum of money for retirement. 

Rollover Your Money into a Bitcoin Roth IRA

You can also rollover the money from a traditional IRA or 401(k) into a Bitcoin Roth IRA in Viva Capital. You just have to remember one thing - you’re only allowed to invest $6,000 (if you’re under 50) or $7,000 (if you’re 50 or over) in all your IRA accounts. You cannot, for instance, invest $6,000 in each account. That number covers all of your IRAs.

Also, you’re assessed a hefty penalty for early withdrawal, which in this case would happen before you turn 59 1/2 years old. So, make sure you understand the implications of withdrawing your money too early. Know the requirements for investing in a traditional or Roth IRA.

Why Roth IRAs are Popular Investment Choices

Most investors like Roth IRAs because they allow them to withdraw their money tax-free and they can make the withdrawals at any age. 

You cannot do this with a traditional IRA, You must start withdrawing the money at 72, and you’ll also pay a tax on the withdrawals. In this case, your withdrawals are taxed as ordinary income.

Signing Up for a Bitcoin SDIRA

When you sign up for a Bitcoin SDIRA, the process is simple as a custodian handles all the processing. You will fill out paperwork and the deposit or rollover information. The custodian manages the details from there. 

You can start investing pretty fast - usually, the next day, provided you directly invest or rollover money into your account. If you choose an indirect rollover, you’ll have to wait two weeks for a check. Once you receive the check, you have 60 days to rollover the amount. If you don’t meet the deadline, you’re assessed a penalty. That is why most people directly invest money or rollover their investment.

You Direct the Trading Activity

When you sign up for a Roth SDIRA that contains Bitcoin, you can securely make trades and, as noted, avoid paying taxes on capital gains. You have the latitude to make transactions as you choose.  Your custodian will follow your directions and make the trades for you. He or she will also allocate the withdrawals when you’re ready to make this move.

Expanding Your Investment Horizon

By having holdings in IRAs that include Bitcoin, stocks, and bonds, you leverage your risk and stand to gain a healthy return as well. While Bitcoin transactions are volatile, they also can be lucrative. That is why they are the ideal investment to add to a diversified portfolio.

Take a Close Look at Your Retirement Options Now

Look at your investment options for retirement. By broadening your asset classes, you can make investments more securely and ultimately enjoy a higher return.