Topic: How and why to hold bitcoins in your Roth IRA (yes, you can do it today!) - page 5. (Read 16901 times)
January 05, 2014, 03:13:49 AM
Very cool
January 05, 2014, 12:37:45 AM
I definately will. I will get the ball rolling this week.
I should probably tip you for this advice that could save me much money down the road.
I should probably tip you for this advice that could save me much money down the road.
Just make sure you read his first post! I think it's a great idea. But it isn't cheap. And I wouldn't try it on your own without a CPA involved. You have to be real careful of any self dealing or self interest in setting up an IRA/Roth IRA like this. And if it's just regular Roth you're limited to a $5,500 investment each year. Unless of course you still have some IRA/401k money, then roll into this and convert any amount you like.
Good luck!!
I absolutely agree. It's not cheap. It's not effortless. There are restrictions on what you're allowed to do, and the penalties can be severe if you break the rules. Be careful!
However, if bitcoin really explodes, depending on the size of your investment, this could potentially save you hundreds of thousands of dollars in capital gains taxes.
January 05, 2014, 12:33:44 AM
I should probably tip you for this advice that could save me much money down the road.
Thanks for the generous tip! That's a first for me!
If you do go the IRA LLC route, let me know how it works out.
January 04, 2014, 08:18:52 PM
I definately will. I will get the ball rolling this week.
I should probably tip you for this advice that could save me much money down the road.
I should probably tip you for this advice that could save me much money down the road.
Just make sure you read his first post! I think it's a great idea. But it isn't cheap. And I wouldn't try it on your own without a CPA involved. You have to be real careful of any self dealing or self interest in setting up an IRA/Roth IRA like this. And if it's just regular Roth you're limited to a $5,500 investment each year. Unless of course you still have some IRA/401k money, then roll into this and convert any amount you like.
Good luck!!
January 04, 2014, 06:27:36 PM
I should probably tip you for this advice that could save me much money down the road.
That is very kind indeed.
I've sent some tips, but I've never received one myself.I just set up this new tip address: 1PPJHDawPvjh6MEzsvXrMYLgpLmyAaNXUc
January 04, 2014, 06:27:06 PM
Well I know there is a lot of noise here but this is a good thread so BUMP. Anyway, I plan on doing this at least once, with a sense of urgency this year so thanks again for adding this thread to the forum.
January 04, 2014, 01:38:46 PM
I definately will. I will get the ball rolling this week.
I should probably tip you for this advice that could save me much money down the road.
I should probably tip you for this advice that could save me much money down the road.
January 04, 2014, 01:20:45 PM
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.
That's what frustrates me about this forum. Too much inane chatter, and not enough intelligent discussion.
The stats say I've spent 100 hours reading this forum, yet I had to discover the Roth IRA LLC idea somewhere else. I'm obviously wasting my time looking for useful information here.
You can still do the Roth IRA LLC thing with a portion of your coins.
January 04, 2014, 12:34:49 PM
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.
January 04, 2014, 10:41:11 AM
Thank you +1
Unless rolling over, this is limited to $5500/yr though correct?
Unless rolling over, this is limited to $5500/yr though correct?
Yes, unless you are over 50, in which case the limit is $6500 per year. I don't think there is any limit to the size of transfers, rollovers, and conversions.
This is correct. There are no limits for the size of transfers. Roth conversions used to have an income limit (you make to much you couldn't do it) but that went away a few years back. Anyone can convert IRA funds to a Roth IRA regardless of income these days. Powerful investment option for the super wealthy if you believe in the potential exponential growth in Bitcoin. Imagine having $100k in Bitcoin right now in a Roth. Grows to $1MM, $10MM, no taxes, ever. Nice thoughts.
January 03, 2014, 11:49:29 PM
Thank you +1
Unless rolling over, this is limited to $5500/yr though correct?
Unless rolling over, this is limited to $5500/yr though correct?
Yes, unless you are over 50, in which case the limit is $6500 per year. I don't think there is any limit to the size of transfers, rollovers, and conversions.
January 03, 2014, 10:15:41 PM
Aren't long term capital gains (meaning the assets are held for at least a year) taxed at 20%?
Could be a lot of work/limitations to save the 20%....
But it is an interesting idea.
Could be a lot of work/limitations to save the 20%....
But it is an interesting idea.
January 03, 2014, 09:49:00 PM
Thank you +1
Unless rolling over, this is limited to $5500/yr though correct?
Unless rolling over, this is limited to $5500/yr though correct?
January 03, 2014, 07:51:38 PM
Thank you for this timely thread.
January 03, 2014, 05:14:27 PM
I think I may be on the wrong site. At this site, one person asks if the price will ever go above $X, and 40 people answer, "to da effin moon!" Then it turns into 17 pages of pumping the latest hamstercoin. Meanwhile, a serious post about how to avoid taxes on capital gains gets very few responses.
Can someone please direct me to the Bitcoin forum for grownups?
Can someone please direct me to the Bitcoin forum for grownups?
Seriously. I feel the same way sometimes.
Maybe I should change this thread's title to, "This is how much BFL sucks" to get more people to read it.
January 03, 2014, 05:14:12 PM
Of course, the usual disclaimers apply to everything I say. Do not consider this to be investment or legal advice. Always consult a qualified and overpaid CPA and tax attorney before making any investment or just sitting there with your teeth in your mouth and not investing. Always consult a doctor before not starting any exercise program.
Bitcoin is risky and volatile, and you could lose 100% of your investment, which explains why SecondMarket has only sold about $70 million worth to rich people. Past performance does not guarantee future gain, although generally speaking, the trend is your friend.
Only invest money you can afford to lose. Do not invest in Bitcoin if you are unwilling to accept the risks of either becoming filthy rich or losing your entire investment.
Bitcoin is risky and volatile, and you could lose 100% of your investment, which explains why SecondMarket has only sold about $70 million worth to rich people. Past performance does not guarantee future gain, although generally speaking, the trend is your friend.
Only invest money you can afford to lose. Do not invest in Bitcoin if you are unwilling to accept the risks of either becoming filthy rich or losing your entire investment.
SecondMartket -only- $70MM (I think its $35-40MM of actual new $'s)?? Their goal was $10MM by year's end. I think they sold way more than anyone thought they could sell in such a short amount of time. And of course because they did so well others are jumping aboard the bandwagon. Fortress will have their trust up and running shortly is my guess. Second Market proved that accredited investors do want to own even in the fairly early stages.
And of course, a really easy way to own coin in an IRA or Roth.
January 03, 2014, 02:39:53 PM
How can we be sure it will be true in the future? Those tax rates and rules change almost every year!
We can't be sure of the future, but congress missed the deadline to change it for 2014. So up through April 2015 taxes, we're still good. For Bitcoin, this bit of laziness is probably everything, since I think we will go almost to the top of the S curve this year.
January 03, 2014, 02:34:34 PM
Of course, the usual disclaimers apply to everything I say. Do not consider this to be investment or legal advice. Always consult a qualified and overpaid CPA and tax attorney before making any investment or just sitting there with your teeth in your mouth and not investing. Always consult a doctor before not starting any exercise program.
Bitcoin is risky and volatile, and you could lose 100% of your investment, which explains why SecondMarket has only sold about $70 million worth to rich people. Past performance does not guarantee future gain, although generally speaking, the trend is your friend.
Only invest money you can afford to lose. Do not invest in Bitcoin if you are unwilling to accept the risks of either becoming filthy rich or losing your entire investment.
Bitcoin is risky and volatile, and you could lose 100% of your investment, which explains why SecondMarket has only sold about $70 million worth to rich people. Past performance does not guarantee future gain, although generally speaking, the trend is your friend.
Only invest money you can afford to lose. Do not invest in Bitcoin if you are unwilling to accept the risks of either becoming filthy rich or losing your entire investment.
Ditto.
January 03, 2014, 02:32:24 PM
I think I may be on the wrong site. At this site, one person asks if the price will ever go above $X, and 40 people answer, "to da effin moon!" Then it turns into 17 pages of pumping the latest hamstercoin. Meanwhile, a serious post about how to avoid taxes on capital gains gets very few responses.
Can someone please direct me to the Bitcoin forum for grownups?
Can someone please direct me to the Bitcoin forum for grownups?
Seriously. I feel the same way sometimes.
January 03, 2014, 02:31:44 PM
If you hold for a year and make less than $72,000 joint ($36,000 single) in non-long-term-gain salary then you also pay no capital gains taxes.
Is this a new thing, because that didn't used to be true. Are you sure it is based only on your non-long-term-gain income?
How can we be sure it will be true in the future? Those tax rates and rules change almost every year!
This is not a new thing. It has been for years (since 2008). See the table here for the rates:
https://en.wikipedia.org/wiki/Capital_gains_tax_in_the_United_States#Deferment_strategies
The qualifications for the tax brackets are here:
https://origin.bankrate.com/finance/taxes/tax-brackets.aspx
"Ordinary income is usually characterized as income other than {long-term} capital gain." {Brackets mine} I have confirmed with my tax adviser that short-term capital gains ARE ordinary income, long-term are not.
https://en.wikipedia.org/wiki/Ordinary_income
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