You are able to use your Rocket Dollar accounts to invest in Bitcoin and other types of cryptocurrencies such as Ethereum, Ripple, Litecoin, and any other cryptocurrency. You can open an account at an exchange, but it must be able to properly handle your IRA LLC or Solo 401(k) Retirement Trust.
In order to properly execute the purchase, the crypto exchange must be able to handle IRA LLCs or Retirement trusts. You can call us at 1-855-762-5383 Option 2 for more details on exchanges who can handle this process.
If you're using an LLC inside of the Self-Directed IRA or Self-Directed Solo 401(k) you'll open an account at a crypto exchange in the name of the LLC. John Smith's LLC name is JSmith RD LLC. John Smith is the single member and the LLC is member managed. John will open the exchange account in the name of JSmith RD LLC and will use the LLC's EIN in the sign up process.
If your Self-Directed Solo 401(k) plan's name is John Smith EPSP 401(k) you would title your account at the exchange as John Smith, Trustee for John Smith EPSP 401(k).
Fees in this area have been startlingly high, from the IRA provider and the exchanges. Our fees are a flat $360 to sign up, and then always $15 a month after that. Trading fees are set by the exchange.
Bitcoin IRAs have often been sold as overpriced and one asset vehicles. Self-Directed IRAs also have the ability to hold a variety of assets when setup properly, not just one asset at a time. With an "umbrella" LLC or a trust, you can hold cryptocurrency along with a variety of other assets in a retirement portfolio. This allows you to invest in cryptocurrency while also diversifying across a variety of assets of different risk levels.
No. Similar to someone storing gold in their own home, someone cannot buy crypto for their IRA and then mingle it with their personal assets as that would be a prohibited transaction. Your Self-Directed IRA or Self-Directed Solo 401(k) crypto must be separate from your personal assets or you are at risk of a prohibited transaction. Considering this, Rocket Dollar has set out to pick partners that can handle both LLCs, Trusts, Self-Directed retirement accounts, and proper security.
Or preferred crypto partner has difference between "hot wallet" for active trades and various stages of cold storage to hold assets.
Digital Security is important when related to cryptocurrency. Use strong passwords, and do not store your hot or cold storage wallet passwords or your exchange password anywhere digitally that could be easily phished or hacked. Rocket Dollar helps you properly custody these assets, but is not responsible for the security of holding your digital assets. That is between you and the exchange.