Quote from: Bostonbitcoin on January 12, 2014, 12:33:36 PM

Quote from: User705 on January 12, 2014, 06:53:32 AM

Isn't one able to do Roth IRA right now with casascius coins or is it limited to bullion pm coins?

Casascius coins are likely considered a collectable and while IRS regs and the tax code theoretically allow collectables in an IRA, the practical matter of actually doing so is much more difficult.

For an IRA to be considered real and recognized by the IRS it must be confirmed to be compliant. Major custodians like Fidelity, UBS etc. have no problem at all getting the plans considered to be complaint....but there are almost no major custodians who can take non standard assets like this.

So....you'd be looking at either a high end very specialized solution done through a law firm or family office....usually something focused on investors with over $50 mm......or you'd be looking at getting your own custom IRA to be considered compliant.

Both are hard paths.

Ideal solution for Bitcoin is something which is on an exchange and requires no special approval....one on the exchange ANY IRA which has access to stocks could buy it very easily.

It's not nearly as hard to own bitcoins in an IRA as this post suggests. For about $1,500 and a small amount of effort, you can have a company like Broad Financial set up an IRA LLC for you, which allows you to invest IRA funds directly in bitcoins or a wide variety of other investments.

You cannot invest in Casascius coins, because the IRS rules specifically prohibit investing in collectibles, and they specifically say that coins, other than a certain few specific silver, gold, and platinum ones, are considered collectibles. Since Casascius coins are physical coins, they are disallowed.

However, normal bitcoins are not actually coins ("a flat, typically round piece of metal with an official stamp, used as money"), so they are allowed.

Yes, it will be easier once there is an ETF, but how long will we have to wait for that to happen? And how much will the price rise in anticipation of the launch of the ETF once it is approved?

If the bitcoin keeps going up, you can save a considerable amount in capital gains taxes by investing in bitcoins inside a Roth IRA LLC today.

Details at https://bitcointalk.org/index.php?topic=396783.0.