With the introduction of Premium Custody Accounts (PCA), many are wondering how it compares to our existing Crypto IRA Accounts. While both offer a seamless way to buy, sell, and safely custody crypto, they serve distinct purposes.
Premium Custody Account vs. Crypto IRA
Premium Custody Account (PCA)
A Premium Custody Account (PCA) is a non-IRA (non-retirement) account that allows clients to buy, sell, and safely custody crypto 24/7. This account is different from other types of crypto accounts.
- Closed-Loop System: iTrustCapital’s closed-loop system significantly reduces the risk of client assets being transferred to unauthorized accounts.
- USD-Only Deposits: PCA accounts only accept USD deposits from the account owner's US bank.
- No Crypto Deposits or in-kind Transfers: Digital assets cannot be used to fund a PCA account (USD only).
- USD-Only Withdrawals: Withdrawals are only allowed in USD, directly to the account owner's bank on record.
- No Crypto Withdrawals: Digital assets cannot be withdrawn, transferred to external wallets, used for payments, sent to personal wallets, or other exchanges or platforms.
- Taxes: Unlike a Crypto IRA, PCAs do not offer tax benefits but provide a secure way to buy, sell, and custody crypto outside of a tax-advantaged retirement account.
- 1:1 Asset Holdings: All assets are held off-balance sheet, ensuring full ownership and protection.
- No Contribution Limits: With a PCA account, there are no maximum yearly contribution limits.
- Institutional-Grade Custody: Assets are safeguarded through regulated third-party US banks and custodians, ensuring greater protection for digital assets and USD.
Crypto Individual Retirement Account (IRA)
A Crypto IRA gives clients access to buy and sell crypto within a tax-advantaged retirement account.
- Tax Advantages: IRAs offer tax benefits, depending on the type of account. Traditional IRAs are tax-deferred accounts, while Roth IRAs are tax-free accounts. These advantages are not available when buying and selling crypto outside of an IRA.
- Contribution Limits: Unlike a PCA, Crypto IRAs follow IRS regulations, including contribution limits and distribution rules, but they provide tax benefits not available in non-IRA accounts.
- 1:1 Asset Holdings: All assets are held off-balance sheet, never leveraged, loaned out, or commingled with business operations, ensuring full ownership and protection.
- Institutional-Grade Custody: USD and digital assets are held through a regulated, state-chartered bank and trust company also known as a “Qualified Custodian”, and institutional crypto storage providers, enhancing asset protection and reliability.
What are the fees?
PCA fees are similar to the 1% transaction fees for our Crypto IRAs. Please see further details here.
Comparison: Premium Custody Account vs. Crypto IRA
|
Feature |
Premium Custody Account (PCA) |
iTrustCapital Crypto IRAs |
|
Tax-Advantages |
No |
Yes |
|
Funds Held Off Balance Sheet |
Yes |
Yes |
|
Wallet Deposit/Withdraw or Transfer Functions |
No |
Yes (only in-kind distributions) |
|
Beneficiary Designation |
No |
Yes |
|
US-Based Live Client Service |
Yes |
Yes |
|
24/7 Access |
Yes |
Yes |
|
Tax Reporting |
Yes |
Yes |
|
Third Party Custody (USD and Crypto |
Yes |
Yes |
Have Questions? We're Here to Help
If you have any questions please contact us at (562) 600-8437 or submit a request.
We are committed to providing prompt, knowledgeable support to ensure you get the most out of your iTrustCapital experience.
About Us
iTrustCapital is a leading fintech software platform for alternative assets. The Company provides 24/7 access to digital assets and precious metals through self-directed, tax-advantaged IRA, and Non-IRA account options. Leveraging a highly secure closed-loop eco-system and third-party US banks and custodians, iTrustCapital provides greater asset protection and flexibility for a broad range of clients.
Disclaimer
This article is for informational purposes only and is not intended to constitute investment advice in any way or constitute an offer to buy or sell any digital asset, cryptocurrency, or security or to participate in any investment strategy.
iTrustCapital is a fintech software platform for alternative assets. TrustCapital 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 digital asset, precious metal or investment strategy.
Investing in any digital asset or cryptocurrency (including meme coins) carries significant risks due to their speculative and highly volatile nature. Past performance is not an indication of future results. No investment is completely risk-free, and every investment carries the potential for losing some or all of the principal amount invested. Digital assets and cryptocurrencies are 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.
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. Conduct your own research and consult with a qualified legal, investment, or tax professional to assess your own risk tolerance prior to investing.
iTrustCapital makes no representation or warranty as to the accuracy or completeness of this information and does 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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