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Bitcoin, IRAs and Tax Prep



In today’s issue, Bryan Courchesne from DAIM explains how bitcoin can be integrated into US Individual Retirement Accounts, what to watch out for, and the importance of working with a financial advisor.

then, Eric Tomaszewski from Verde Capital Management shares tax season preparation tips with Ask and Expert.

Sarah Morton


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Bitcoin May Be Nearing A Major Breakout: Is Your IRA Ready For The Opportunity?

Leading researchers and massive investors are putting price targets on bitcoin as this project is potentially on the verge of a significant bull run. Tom Lee said that bitcoin will be $250,000 this year, and Michael Saylor said that bitcoin will reach $500,000 overnight.

Imagine having a large bitcoin allocation in your retirement account before this bull run kicks into high gear – a tax-advantaged allocation funded by an old Individual Retirement Account (IRA) you may have forgotten about. The opportunity is right in front of you, but it’s important to set it up the right way with a platform that offers comprehensive support and peace of mind.

Step 1: Self-Direct Your IRA Or Work With An Advisor

When investing in bitcoin through your IRA, security and compliance are paramount. A qualified custodian ensures that your retirement assets are managed according to IRS regulations, offering a layer of protection that goes beyond simple wallet management. If you choose a self-directed approach, you know that you are in charge of transferring and making investment decisions. If you go with an advisor, they will handle most of the transfer process for you, right down to portfolio management.

Self-directing means you have to keep an eye on your investments, which are vulnerable to mistakes, fraud, or mismanagement. An advisor does due diligence on service providers and regularly monitors accounts for best results.

Step 2: Set Up Your Tax-Advantaged Crypto IRA

Once you’ve chosen a self-directed platform or advisor, the next step is to sign up, which involves executing and approving a client agreement. While the process is similar for both options, working with an advisor offers critical advantages. An advisor can help design a portfolio that fits your risk profile, guide you in determining appropriate position sizes relative to your other investments, and help implement a long-term investment plan accordingly to your financial goals. In contrast, self-directed platforms don’t provide personalized guidance, don’t care what you buy, and are often incentivized to encourage frequent trading, which can erode your profits over time. .

Additionally, setting up the right IRA structure is important. For example, if you already have a Traditional IRA, you will need to open a new Traditional IRA with the crypto IRA provider to maintain consistency. Transferring assets can be complicated, especially if you’re not sure which investments to sell, how much to get back, or how to monitor the transfer process. An advisor can guide you through these steps, handling much of the complexity and ensuring a smoother experience.

Step 3: Invest For Growth As The Crypto Sector Takes Off

As discussed above, a self-directed platform leaves you to choose investments, determine position sizes, and decide when to buy or sell. If you’re confident in your ability to outperform the market and manage these decisions independently, this approach may work for you – but it takes time, expertise, and discipline, with no safety net if things go wrong.

In contrast, working with an advisor offers a distinct advantage. Advisors provide guidance tailored to your financial goals, help you select quality investments, and can offer pre-designed portfolios with proven track records. Instead of going it alone, you’ll have access to a team of experts whose full-time job is managing digital assets and staying on top of industry trends.

As many experts predict, the upcoming bitcoin bull run could drive prices well into six figures. By securing a bitcoin IRA today, you can position yourself to benefit from this growth potential while leveraging the tax benefits and professional management to support long-term success.

Bryan Courchesne, CEO, DAIM


Ask an Expert

Q. It is the beginning of a new year. What are some things I should consider so I can start the year off right?

It is important to focus on systems more than goals. Goals will give you direction, while systems will create progress. Identify daily and weekly actions that will help you achieve bigger goals, personally and professionally. From there, start small, repeat consistently, and tie new habits to old ones to help you remember and reinforce them.

Q. It’s 2025, so what strategies can I use for tax year 2024?

Fortunately, it’s never too late to find tax deductions, as there are a range of options to consider. Traditional IRAs, Health Savings Accounts (HSAs), and self-employed retirement plan contributions – such as made through a SEP IRA or Solo 401(k) plan for freelancers or contractors – are some only available options.

Q. How do I deal with the upcoming tax bill in April?

It all comes back to planning. If you are addressing this situation now, work with professionals to demonstrate the necessary value.

From there, prioritize your liquidity needs and goals for the coming months while creating a payment plan.

This may require adjusting your budget and exploring creative payment options, such as IRS installment plans, security-based lending, etc.

Eric Tomaszewski, Financial Advisor, Verde Capital Management


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