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Due to recent market conditions, some Crypto IRA providers have begun charging monthly or annual fees. You might be looking for a stable and lower cost option for your cryptocurrency retirement accounts.
If you believe in the long-term potential of cryptocurrencies as an investment, a crypto IRA may offer potential tax benefits and savings. A cryptocurrency IRA is a self-directed retirement account where you can buy, sell, and hold cryptocurrencies.
If you want a reliable option with no recurring fees, you might be interested in in-kind transfers for cryptocurrency IRAs. What are in-kind transfers? Keep reading to find out!
What are In-Kind Transfers?
An in-kind transfer is when you move assets from one account to another without selling your holdings. Going through the process of: selling into cash, moving your cash across accounts, and repurchasing assets is a hassle. Especially when the account in question is an IRA that could trigger taxable events. In-kind transfers allow you to move your cryptocurrency directly between accounts without liquidating your assets.
Whatever your reason for moving to a new cryptocurrency IRA platform, there are good reasons to avoid selling and rebuying cryptocurrency assets. First, you shouldn’t have to pay transaction fees to own the same asset elsewhere. Second, you are just as well suited using blockchain to transfer your Bitcoin, Ethereum, and other assets rather than fiat dollars.
iTrustCapital makes it easy to move your assets by offering in-kind transfers for crypto IRAs. In fact, iTrustCapital is one of the only crypto IRA platforms to take in-kind transfers from other crypto IRAs.
Click here to learn more and get started with an in-kind transfer to iTrustCapital.
Importance of A Custodian
A custodian is a financial institution that holds your crypto IRA’s assets. It’s critical to work with a trustworthy custodian that segregates your assets and doesn’t use them for any other purpose.
Unlike many crypto IRA platforms, iTrustCapital never takes custody of your assets. Instead, it employs custodial cold storage cryptocurrency wallets.
iTrustCapital uses a regulated, state-chartered trust company to keep customer asset wallets secure through institutional storage. The custodian is subject to the regulations and laws governing trust companies, unlike a cryptocurrency exchange.
Customer assets are never mixed with iTrustCapital or custodial company funds, meaning that if something negative were to happen to either business, your funds would not be compromised.
Watch out for Custody Fees
Custodian fees are recurring fees charged by a custodian simply for holding your currency. Once you purchase or transfer Bitcoin, Ethereum, Solana, Polkadot, Avalanche, or any of the dozens of supported currencies with iTrustCapital, you won’t pay any maintenance fees.
That means zero custodian fees, zero monthly fees, and zero annual fees.
Remember that percentage-based annual fees grow as your balance increases. In an ideal IRA or Roth IRA account, you shouldn’t have to pay any recurring maintenance fees.
Unfortunately, custody fees are fairly common in the cryptocurrency IRA industry. With an account from iTrustCapital, you don’t have to worry about recurring account fees.
How a Cryptocurrency IRA Transfer Works
With an in-kind transfer, you can move assets without triggering a taxable event.
iTrustCapital has a transparent and easy-to-use platform, and includes several account features to make investing accessible for all levels of experience. These features include assistance in setting up a new IRA account, facilitating in-kind transfers or rollovers to fund your account, and a straightforward user interface.
iTrustCapital also includes all necessary tax reporting, unlimited asset storage with vetted third-party custodians, and a live first-party support team.
With iTrustCapital, you can invest in multiple self-directed IRA accounts, including traditional, Roth, SEP, and Simple IRAs. You can transfer your existing IRA, start a new IRA, or rollover your employer retirement plan, including 401(k) and similar accounts depending on your situation.
Once your account is funded, you’re ready to start self-trading tax-free*! Depending on the type of account, taxes are typically deferred until future distributions (which is a legal term that essentially means a withdrawal). With a Roth IRA, capital gains and qualified distributions in retirement are tax-free*!
In-kind transfers allow you to move your cryptocurrency and other financial assets without paying taxes. If you don’t like where your investments are currently held for any reason, an in-kind transfer may be well worth your time.
iTrustCapital helps facilitate a smooth transfer of cryptocurrency assets into a secure, segregated crypto wallet where you get all of the tax advantages of an individual retirement account. Plus, your cryptocurrency remains free of recurring fees, which could make a big difference in your retirement portfolio.
Does iTrustCapital charge custody fees for cryptocurrency?
iTrustCapital doesn’t charge custody fees, setup fees, or recurring account fees. iTrustCapital only charges transaction fees when buying or selling cryptocurrency.
Does iTrustCapital charge annual or monthly fees?
No, iTrustCapital doesn’t charge any annual or monthly fees. iTrustCapital charges a simple 1% transaction fee when buying or selling cryptocurrencies using the platform, less than competitors who charge up to 2.5% per transaction.
What is a custodian?
A custodian is a financial institution responsible for safely storing investment assets for clients and customers. iTrustCapital works with a third-party custodian to maintain segregated accounts for customer assets. The custodian is a state-chartered, regulated trust company.
What is the lowest cost Crypto IRA?
With iTrustCapital, there are no ongoing account fees, regardless of your cryptocurrency balance. With extremely competitive self-trading fees, a crypto IRA from iTrustCapital is among the lowest cost crypto IRAs available in the United States.
This article is for information purposes only. It does not constitute investment advice in any way. It does not constitute an offer to sell or a solicitation of an offer to buy or sell any cryptocurrency or security or to participate in any investment strategy.
iTrustCapital is a cryptocurrency IRA software platform. It is not an exchange, funding portal, custodian, trust company, licensed broker, dealer, broker-dealer, investment advisor, investment manager, or adviser in the United States or elsewhere. iTrustCapital is not affiliated with and does not endorse any particular cryptocurrency, precious metal, or investment strategy.
Cryptocurrencies are a speculative investment with risk of loss. Precious metals are a speculative investment with risk of loss. Cryptocurrency is not legal tender backed by the United States government, nor is it subject to Federal Deposit Insurance Corporation (“FDIC”) insurance or protections. Clients do not receive a choice of custody partner. The self-directed purchase and sale of cryptocurrency through a cryptocurrency IRA have not been endorsed by the IRS or any regulatory agency. Historical performance is no guarantee of future results.
Some taxes and conditions may apply depending on the type of IRA account. Investors assume the risk of all purchase and sale decisions. iTrustCapital makes no guarantee or representation regarding investors’ ability to profit from any transaction or the tax implications of any transaction. iTrustCapital does not provide legal, investment or tax advice. Consult a qualified legal, investment, or tax professional.
iTrustCapital makes no representation or warranty as to the accuracy or completeness of this information and shall not have any liability for any representations (expressed or implied) or omissions from the information contained herein. iTrustCapital disclaims any and all liability to any party for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising directly or indirectly from any use of this information, which is provided as is, without warranties.
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