Search content
Sort by
Showing 11 of 11 results by CygnusX1
Re: How and why to hold bitcoins in your Roth IRA (yes, you can do it today!)
If you pay U.S. taxes, you need to be aware that it is possible TODAY to hold bitcoins in your Roth IRA, and there are important tax advantages for doing so!
Most people think that you can only hold stocks and mutual funds in an IRA, and many bitcoin fans are anxiously waiting for approval so they can invest retirement funds in bitcoin through the Winklevoss ETF. What they do not realize is that there is already a way to hold bitcoins in IRAs today!
It takes some effort and expense, but anyone can set up an "IRA LLC," which allows you to hold MANY different types of alternative investments, including bitcoins. It's 100% legal.
There are companies that (for around $1500) will help you set up a self-directed IRA (traditional, Roth, etc.), plus an IRA legal liability company (IRA LLC) for managing the investments. Your IRA is the sole owner of the LLC, and you are the manager. Your IRA LLC can invest in a wide variety of things, like real estate, gold, silver, and even bitcoins.
It's not a trivial undertaking. There are a few things you cannot invest in (life insurance, collectibles, etc.), and there are certain kinds of transactions that are prohibited. But you can buy and sell bitcoins on exchanges, hold them in cold storage, etc. And the tax advantages make it worth the effort and expense.
In particular, if the price of bitcoin increases substantially, a Roth IRA LLC can completely eliminate capital gains taxes, so if you do become a Bitcoin millionaire, you don't have to pay half of it to the U.S. government.
If you have thousands of dollars worth of bitcoins, you should consider using an IRA LLC to make sure you get to keep the gains!
If you found this post helpful, tips are appreciated to 1PPJHDawPvjh6MEzsvXrMYLgpLmyAaNXUc.
Most people think that you can only hold stocks and mutual funds in an IRA, and many bitcoin fans are anxiously waiting for approval so they can invest retirement funds in bitcoin through the Winklevoss ETF. What they do not realize is that there is already a way to hold bitcoins in IRAs today!
It takes some effort and expense, but anyone can set up an "IRA LLC," which allows you to hold MANY different types of alternative investments, including bitcoins. It's 100% legal.
There are companies that (for around $1500) will help you set up a self-directed IRA (traditional, Roth, etc.), plus an IRA legal liability company (IRA LLC) for managing the investments. Your IRA is the sole owner of the LLC, and you are the manager. Your IRA LLC can invest in a wide variety of things, like real estate, gold, silver, and even bitcoins.
It's not a trivial undertaking. There are a few things you cannot invest in (life insurance, collectibles, etc.), and there are certain kinds of transactions that are prohibited. But you can buy and sell bitcoins on exchanges, hold them in cold storage, etc. And the tax advantages make it worth the effort and expense.
In particular, if the price of bitcoin increases substantially, a Roth IRA LLC can completely eliminate capital gains taxes, so if you do become a Bitcoin millionaire, you don't have to pay half of it to the U.S. government.
If you have thousands of dollars worth of bitcoins, you should consider using an IRA LLC to make sure you get to keep the gains!
If you found this post helpful, tips are appreciated to 1PPJHDawPvjh6MEzsvXrMYLgpLmyAaNXUc.
jzcjca00,
Is selling my current bitcoins necessary in order to purchase bitcoins into new LLC Roth IRA?
It seems that selling bitcoins that I held for a while leaves me with fiat that I cannot put into the first Roth IRA
due to contribution limits.
Can I just open LLC Roth with fiat from the sale of mutual funds (from your example)?
Unless you are rolling over funds from an existing account then you are limited to depositing $5500/yr into the new IRA. You can buy more BTC with those funds.
I dont think there is any way to convert all of your current BTC assets over to the IRA if it exceeds the yearly contribution limit.
Unfortunately, you will be required to pay taxes on all of your BTC holdings unless they are already under a IRA LLC. No way around that. But the sooner you setup this kind of IRA then the more you can start contributing in this way and not have to worry about future taxes.
That is how I understand it, at least.
Re: How and why to hold bitcoins in your Roth IRA (yes, you can do it today!)
Most of the restrictions seem to be with double dealing and complicated lending. If you just used it to hold bitcoin then I dont think there would be much to worry about.
Re: How and why to hold bitcoins in your Roth IRA (yes, you can do it today!)
Really wish I had known this sooner. I liquidated my IRA last year to buy bitcoin but I withdrew the funds. I figured the penalties would be worth it (and it is) but now I am limited to contribute back with this method.
1. Early adopters will need to liquidate some of their positions in order for bitcoin to appreciate. The rate that new coins are mined will not satisfy demand for new entrants. Major holders will have to sell off chunks of their position to newcomers allowing wealth to be more evenly distributed for the sake of the economy. The benefit though is that as new money flows into the economy, the value of each slice becomes much more valuable than it would if newcomers were not able to buy in.
2. A publicly traded trust is a brilliant way to get institutional money in the bitcoin system. Most of us can agree that one of the major issues holding back adoption of bitcoin is the difficulty of investing. Most people are not capable of figuring out all the steps to do it. There are also legal boundaries restricting where money can flow. For example, it is next to impossible right now for 401k and IRA money to invest in bitcoin. By creating a public trust, the Winklevoss are actually paving a path for these kinds of institutional funds to get into bitcoin. This is a win for anyone holding bitcoin.
It is naive to think that the Winklevoss are trying to scam. They are doing exactly what needs to be done to help grow the bitcoin economy. Yes, they will sell off some of their position and make money along the way but so will everyone else.
2. A publicly traded trust is a brilliant way to get institutional money in the bitcoin system. Most of us can agree that one of the major issues holding back adoption of bitcoin is the difficulty of investing. Most people are not capable of figuring out all the steps to do it. There are also legal boundaries restricting where money can flow. For example, it is next to impossible right now for 401k and IRA money to invest in bitcoin. By creating a public trust, the Winklevoss are actually paving a path for these kinds of institutional funds to get into bitcoin. This is a win for anyone holding bitcoin.
It is naive to think that the Winklevoss are trying to scam. They are doing exactly what needs to be done to help grow the bitcoin economy. Yes, they will sell off some of their position and make money along the way but so will everyone else.
Re: [ANN] cudaMiner - a new litecoin mining application [Windows/Linux]
I am only getting about 136 KH/s from my K5000s. I've tried many different settings and autotune but that is the best I get.
It is unfortunate because I have 3 of them and am about to get 3 K6000s. Surely these cards should be capable of much better performance?
It is unfortunate because I have 3 of them and am about to get 3 K6000s. Surely these cards should be capable of much better performance?
Hello. Getting my first post out of the way here so I can participate in other forums. 
I dont know if this is "substantial" or not but I really dont have much to say here. I've been lurking for a while and I would like to chime in on some other threads but for now I am relegated to newbie-dom. I hope to someday break free from these chains...
I dont know if this is "substantial" or not but I really dont have much to say here. I've been lurking for a while and I would like to chime in on some other threads but for now I am relegated to newbie-dom. I hope to someday break free from these chains...