In this iTrustCapital review, we will explain how cryptocurrency IRAs allow individuals to invest in Bitcoin, Ethereum, and other major cryptocurrencies for tax-advantaged retirement planning. As a digital asset IRA trading platform, iTrustCapital provides investors with self-directed individual retirement accounts (or IRAs) to use for alternative investments, like cryptocurrencies.
You will also learn more about how iTrustCapital Crypto IRA offers lower rates, one of the most cost-effective in the industry, to trade cryptocurrencies as part of your retirement investment plan, offering no monthly fee and a flat transaction fee of 1%. To top it up, users of the platform can also access excellent customer service through phone, email or an online chat. Let’s review what the iTrustCapital platform can offer you to start and manage your crypto investments in your retirement accounts.
About iTrustCapital
iTrustCapital is a financial services provider and platform for retirement accounts containing alternative assets like cryptocurrencies and precious metals like gold and silver. The company offers several IRA account types, but unlike others, iTrustCapital focuses on accounts holding cryptocurrencies, or “crypto IRAs.”
What Is a Crypto IRA Account?
A Crypto IRA account is a tax-advantaged account meant for retirement planning, but it holds cryptocurrencies instead of U.S. dollars. Much like Traditional IRAs, each Crypto IRA offers a tax benefit meant to incentivize long-term savings. But unlike IRAs holding U.S. dollars, they aren’t so straightforward.
When you invest in a Crypto IRA, you are investing your pre-tax or after-tax dollars into cryptocurrencies. The tax benefits you receive are in U.S. dollars, and you receive the tax benefits once you withdraw from your Crypto IRA – making Crypto IRAs comparable to Gold IRAs. This is because the IRS views cryptocurrencies separately from U.S. dollars and treats them as property instead of currency.
Trading one cryptocurrency for another is considered a taxable event. In the same fashion, trading crypto for U.S. dollars is considered a taxable event. However, crypto-assets held longer than 1 year are considered long-term investments and are taxed as long-term capital gains upon selling.
In short, cryptocurrencies are treated as property but not as currency. Therefore, Crypto IRA accounts allow you to invest in cryptocurrencies in a tax-advantaged way, letting you reap the rewards upon retirement.
What is the Difference Between a Crypto IRA and a Bitcoin IRA Account?
In terms of account setup, there is no real technical difference between a Crypto IRA and a Bitcoin IRA. With these types of retirement accounts being newer, the technical names for them are still somewhat subjective. However, since Bitcoin is simply one of the thousands of cryptocurrencies, the more accurate term would be a Crypto IRA.
However, the term “Bitcoin IRA” can be a helpful name for those who are less familiar with cryptocurrencies and may only know of Bitcoin. The term would also be appropriate for accounts that are set up to only hold Bitcoin.
To further articulate this idea, it would be appropriate to use the term “Ethereum IRA” if a service provider only offered Ethereum in their Crypto IRA’s – as it would help define to the public the type of service being offered.
Why Choose iTrustCapital As Your Crypto IRA
iTrustCapital boasts of several advantages over other Crypto/Bitcoin IRA companies that stand up to scrutiny. The first is that the company is very transparent about its rates and fees. You can find all of the costs associated with an account clearly laid out on the pricing page. There are no nasty surprises, such as hidden fees. You always know what you’re paying for with iTrustCapital’s services.
When it comes to the prices themselves, iTrustCapital is relatively inexpensive. They charge a consistent and flat 1% trading fee when buying or selling cryptocurrencies. In addition, their minimum investment requirements are not especially high, simply an initial investment of $1,000 and a minimum of $500 if you choose to add additional funds to the account, although this is not required.
On top of these factors, iTrustCapital offers a wide selection of cryptocurrencies. They also have robust SOC 2 Type II security for which they are independently audited.
iTrustCapital Crypto IRA Account Review
Let’s take a closer look at how the Crypto IRA account works.
How the Crypto IRA Accounts Works
An iTrustCapital Crypto IRA is meant to be simple and accessible. Opening an account and investing in cryptocurrencies are both easy to do.
As with any other IRA (or other financial products), you will need to go through an I.D. verification process. But once you do that, you can connect a payment option and fund your account. After that, you can begin investing in cryptocurrencies, as well as physical silver and gold.
How to Fund Your Account
You can transfer funds from any existing IRA you have. If you have a job and leave your employer for any reason, you can rollover funds from a:
- 401(k)
- 403(b)
- TSP
- 457
Lastly, you can contribute new funds via ACH, so long as you follow the annual guidelines.
While you can not transfer any cryptocurrencies held on an exchange or digital wallet into an iTrustCapital Crypto IRA, you can transfer your crypto in-kind from another Crypto/Bitcoin IRA provider. This is due to IRS rules stipulating that you can only fund an IRA with U.S. dollars.
Simply put, if you already have a crypto IRA, your custodian can have it transferred to an iTrustCapital IRA without needing to liquidate your assets.
Available Cryptocurrencies
These are the digital currencies available in the iTrustCapital trading platform.
- Bitcoin (BTC)
- Ethereum (ETH)
- Cardano (ADA)
- Chainlink (LINK)
- Polkadot (DOT)
- Litecoin (LTC)
- Dogecoin (DOGE)
- Bitcoin Cash (BCH)
- Stellar (XLM)
- EOS (EOS)
- Uniswap (UNI)
- Compound (COMP)
- Sushi (SUSHI)
- Yearn.finance (YFI)
- Polygon (MATIC)
- Aave (AAVE)
- Solana (SOL)
- Curve DAO (CRV)
- Basic Attention (BAT)
- Enjin (ENJ)
- Algorand (ALGO)
- Cosmos (ATOM)
- Tezos (XTZ)
- Decentraland (MANA)
Tax Benefits
The iTrustCapital IRA accounts offer tax benefits corresponding to their IRA type.
iTrustCapital Traditional Crypto IRA
An iTrustCapital Traditional IRA grants the same tax benefits as a Traditional IRA. The account is tax-deferred, meaning you fund them with pre-tax income and don’t pay taxes until you withdraw during retirement.
iTrustCapital Roth Crypto IRA
Roth IRA accounts offer the opposite structure. You fund a Roth IRA with post-tax income. That means you pay your taxes before you deposit funds into the Roth IRA. The benefit is that because you fund them with post-tax dollars, you don’t pay taxes when you withdraw them during retirement.
iTrustCapital SEP Crypto IRA
Simplified Employee Pension IRAs are tax-deferred accounts like Traditional IRAs. But they enable the business owner or sole proprietor to make contributions as well. For the account owner, the tax benefits are the same as they are with a Traditional IRA.
Fees and Account Minimums
iTrustCapital Crypto IRA accounts come with straightforward minimums and fees.
- You must invest at least $1,000 to open an account
- Additional contributions after initial funding must be no less than $500
- There is a 1% trading fee for transactions
There are no additional or hidden fees. Withdrawals, liquidation, and in-kind transfers are free of charge.
FDIC Insurance
Client funds in USD are FDIC insured.
Security Features
All accounts come with secure storage by Coinbase Custody and Fireblocks. These industry-leading wallet providers not only maintain industry-leading SOC security certifications but also provide insurance coverage of $360 Million.
iTrustCapital’s security complies with standards set out by the American Institute of Certified Public Accountants (AICPA).
Security measures include multi-authentication protocols commonly used in the banking and military sectors. These protocols successfully eliminate single points of failure, such as private keys. This makes it many times more difficult to breach users’ data, even if an attacker acquires part of the cryptographic signature.
In addition, individual user accounts are protected with two-factor authentication by Authy. That means that even if a would-be attacker discovers your password, they will not be able to access your account. Secondary authentication factors include voice, SMS, or in-app authentication.
iTrustCapital Customer Reviews
Impartial customer review platforms such as Trustpilot show that iTrustCapital clients are overwhelmingly happy with the service, with 75% of the total reviews giving it a full 5 stars. Other independent reviews sites also seem to praise the product and services offered by iTrustCapital.
How to Set Up an iTrustCapital Crypto IRA Account
You can set up an iTrustCapital account in a matter of minutes by following these instructions:
- Go to their website and select “Make a Free Account”
- Verify the email account you provide them with
- Follow the steps they guide you through for KYC verification
- Open an account of your choice
- Fund your account with a transfer, rollover, or cash contribution
- DocuSign your formal application
- Purchase the assets you want to add to your account
