My Digital Money users can also access a standard trading account if they want to make trades outside their crypto IRA. While your standard crypto trading won’t receive the same tax advantages as your IRA trades, we still hold your assets safely in a trust.
At My Digital Money, we make the IRA transfer process easy. Once you’ve created your account and indicated that you’d like to transfer an existing IRA, a member of our customer success team will reach out to start the process. We’ll gather information from you about your current custodian and account, and then we take care of everything from there. Our team has existing relationships with many of the top IRA custodians as well as automated processes that streamline rollovers, allowing us to complete most IRA transfers within just a few days.
While you can’t invest directly in NFTs just yet on My Digital Money, we do offer a few ways that you can get exposure to Web3 assets in your crypto IRA. We offer a few coins on My Digital Money such as Decentraland (MANA) that could be considered NFT “adjacent” due to their usage in virtual reality, video games, and other applications that require a non-fungible token.
Transferring an IRA from one institution to another will be the same process, regardless of your current custodian. First, you’ll need to contact your current provider and let them know you’d like to do a “trustee-to-trustee” transfer. This type of transfer will allow you to move your IRA funds without triggering any taxable events or penalties. You will, of course, need authorization information such as passwords and account numbers to start this process, but once you’ve been authenticated, an IRA to IRA transfer is usually a pretty simple process. When you sign up for a crypto IRA on My Digital Money, our customer success team will handle your IRA transfer for you. After you sign up, we’ll gather some account information from you so we can speak with your current provider and take everything from there.
Absolutely. If you’re no longer happy with your 401(k) or simply want to move the funds to a self-directed retirement plan, you can roll over your 401(k) to an IRA without incurring any taxes or penalties. There is no limit on the amount that you can roll over and, once complete, you will have access to a much larger variety of investment options. Unlike an IRA transfer, we can’t handle this process for you, but our team is ready and able to help with every step of your 401(k) to IRA rollover.
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An IRA transfer can usually be completed within 2-3 days. However, in some cases, the process can take a little longer. Since My Digital Money can communicate with your IRA custodian on your behalf, our team can ensure the process is completed as quickly as possible. We have relationships with many of the top IRA custodians and processes that allow us to streamline IRA transfers for our customers. We find that most customers who transfer their IRA to My Digital Money are usually able to start trading within about five days.
A crypto IRA is a retirement account that is just like a traditional IRA, except it allows you to hold cryptocurrency instead of more traditional investments, like stocks or bonds. The main benefit of a crypto IRA is that it allows you to diversify your retirement portfolio with a new asset class that has the potential to grow at a higher rate than more traditional investments. You can learn more about what a crypto IRA is in this article.
Buying crypto in an IRA is actually very similar to buying crypto in a standard trading account. First, you’d sign up with a crypto IRA platform like My Digital Money and fund your account. Once your account is set up and the funds have cleared, you can start trading cryptocurrencies as you would on any other platform. The big difference is that all of the trades executed in the IRA will be allowed to grow tax-free until they are disbursed.
My Digital Money currently offers 20 cryptocurrencies that can be traded in an IRA. Our team carefully researches and reviews each coin before making it available for purchase in an IRA by our customers.
You might be surprised to learn that there is actually no limit on the number of IRAs that you can have. However, there are limits on the amount that you can contribute to the IRA each year that would be subject to tax advantages. Currently, you are allowed to contribute up to $6,000 per year to an IRA, or $7,000 per year if you are over 50.
Your IRA can be taxed in one of two ways depending on the type of IRA it is. A traditional IRA is taxed at the time you make a withdrawal from the account. On the converse, a Roth IRA is taxed at the time of the contribution so no tax is due when you withdraw your assets. Keep in mind, if you withdraw your funds early they will likely be subject to a 10% penalty.
When you contribute to your traditional crypto IRA, you are able to deduct the full amount contributed from your taxable income. This means that if you’ve earned $100,000 in a tax year and you make the maximum contribution of $6,000 to your IRA, your taxable income will only be $94,000. Th maximum contribution limit is imposed by the IRS and is $6000 – $7000 depending on your age. See your Tax Accountant for your specific situation and guidance.