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You are here: Home / Simple IRA / Friends with Tax Benefits – Byron Review

Friends with Tax Benefits – Byron Review

July 29, 2021 by Retirement

The Choice platform of Kingdom Trust, an individual retirement account provider, and bitcoin mining company Compass Mining announced today that they have joined forces to offer IRAs in a tax-advantaged account for miners who produce crypto. Bitcoin IRA, a large digital asset IRA platform, said more than 75% of their customers are over 45 and 31% of near-retirees aged 55 to 64 are invested in cryptocurrencies.

The global cryptocurrency market is growing at a rapid pace and while people generally think of retail crypto investors to be a younger demographic, a new group is emerging as prominent players: people. looking to save for retirement through IRAs and receive tax benefits.

The Choice platform of Kingdom Trust, an individual retirement account provider, and bitcoin mining company Compass Mining announced today that they have joined forces to offer IRAs in a tax-advantaged account for miners who produce crypto.

In general, the US Internal Revenue Service considers bitcoin to be taxable property, so it is taxable in the same way as stocks or bonds. But, it is possible for those who invest in bitcoin to avoid heavy capital gains taxes by including digital assets in certain retirement accounts.

This means Choice users can purchase bitcoin mining machines through an IRA and any coins created could have tax-free appreciation on their retirement account like other assets such as real estate.

“We want to make it simple, accessible, accessible and easy,” Whit Gibbs, Founder and CEO of Compass Mining, said at a Twitter Space “Bitcoin Circular Economy” event Thursday.

“You can create bitcoin for yourself and we are in a golden era of bitcoin where it is also incredibly profitable. It’s great to be able to get people into mining and get the tax benefit they can accumulate until they’re ready, ”Gibbs said.

The platform launched in 2020 and has over 125,000 retirement accounts with 20,000 alternative assets and $ 18 billion in assets under custody.

As the retirement space expands, more companies in the crypto space are working together and raising awareness in tax-efficient ways, said Meltem Demirors, chief strategy officer at CoinShares, during the conference. Twitter Space event.

Cross the generations

Separately, Bitcoin IRA, a large digital asset IRA platform, said more than 75% of its customers are over 45 and 31% of near-retirees aged 55 to 64 are invested in crypto. -coins. While the company primarily has an older user base, the service is available to people 18 and older, as long as they have earned income to contribute to the IRA.

While the younger generation is known to dive into crypto, the older generation is also interested in it, Chris Kline, COO and co-founder of Bitcoin IRA, said in an interview with Blockworks. The older population is investing in cryptocurrency through self-directed retirement accounts due to a desire to catch up on retirement funds, inflation fears and tax benefits, he said.

Bitcoin IRA began in 2016 and has seen waves of interest as price volatility looms, Kline said. But he believes in the long-term value of bitcoin and sees a huge shift in customers who now want exposure to the cryptocurrency world.

In 2017, Bitcoin IRA had 700 account holders and to date it is up about 14,186% to over 100,000 users with around $ 1.5 billion in total transactions, Kline said.

“What motivates investments is that [users] are seeing accelerated growth in crypto to very significant levels, ”Kline said.

About 13% of Americans have invested in cryptocurrency in the past 12 months, according to a recent NORC survey at the University of Chicago. While 62% of those surveyed said they don’t invest in cryptocurrency because they don’t understand it enough.

Cryptocurrency markets have a lot of movement and volatility, which older generations are not used to, Kline said. But in order to reassure customers, he said that Bitcoin IRA is hyper-focused on expanding its functions and accessibility, while also sharing content and education beyond their products to educate users about it. crypto space as well.

Although Kline said he was not a financial advisor or a tax expert, he said there are more advantages to an IRA because you won’t have to pay capital gains tax even though funds are subject to normal tax rates when accessing them.

“To help Americans retire we need to offer more options, what started as a manual concept of a bitcoin IRA has evolved into 24/7 auto-negotiation and further expanded with the first program won so users can make interest on their assets, ”he said. noted. So people can use bitcoin and get paid in bitcoin as a reward.

“Bitcoin is here to stay, it’s a big thing and we’re seeing clients who want to be exposed to it,” Kline said. “Our mission is to help Americans retire, they are behind in retirement planning and are using alternatives [like bitcoin] that’s where they’re going for this accelerated growth, ”he said.

Filed Under: Simple IRA

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