I wanted to buy cryptocurrency in my retirement account. Specifically, I had a ROTH IRA that I wanted to use. When I looked into it a few years ago, I googled, and all that I found in the search were sites like bitcoinira.com, which are fine. However, all of these kinds of sites hold your keys and charge significant fees (30% of the value of the IRA). I wasn’t willing to pay those high fees. I looked into it again about a year ago and discovered that I can buy any cryptocurrency I want. I can hold the private keys without paying a large percentage of my portfolio. How? A checkbook-controlled ROTH IRA. It’s also called a self-directed IRA. Most folks use them to buy real estate with their retirement accounts.
The next step was to figure out how to open up the checkbook IRA and transfer my ROTH IRA into the account. I researched and found several custodians. The fees to open the account varied from around $300 to $3K. The custodians at the higher end open the LLC and checking account, write the operating agreement, and provide nd other services.
I wanted to go to the lower end, but I wasn’t quite sure how to set everything up. That’s when I stumbled upon a site run by someone named Depriest. I am calling myself DepreistLite. His site helped out a ton. I am no expert, and neither is he; however, his knowledge and experience far surpassed my own. After I discovered Depriest and opened the self-directed ROTH, his site was taken down. Currently, it’s only available through the WayBack Machine.
FAQs
1. What is a checkbook-controlled IRA LLC?
A checkbook-controlled IRA LLC is a type of self-directed IRA that allows you to directly manage retirement funds through an LLC checking account. This structure gives you full control to invest in assets like cryptocurrency without needing custodian approval for every transaction.
2. Can I buy cryptocurrency in a Roth IRA?
Yes, cryptocurrency can be purchased within a Roth IRA by using a self-directed IRA structure. With checkbook control, investors can buy and hold crypto while keeping their private keys and avoiding traditional crypto IRA platforms.
3. Why avoid traditional crypto IRA providers?
Many crypto IRA providers hold your private keys and charge high fees, sometimes up to 30% of your portfolio’s value. A self-directed checkbook IRA reduces these costs and gives investors full ownership and control of their assets.
4. How much does it cost to set up a self-directed Roth IRA LLC?
The cost to open a self-directed Roth IRA typically ranges from $300 to $3,000, depending on the custodian. Higher-priced services often include LLC formation, operating agreements, and bank account setup.
Conclusion
A checkbook-controlled Roth IRA LLC offers a powerful way to invest in cryptocurrency while maintaining full control and minimizing fees. Unlike traditional crypto IRA platforms, this setup allows investors to hold their own private keys and avoid high custodial costs. Although it requires more responsibility and careful compliance, the flexibility and long-term tax advantages make it an attractive option. For investors willing to learn the structure, it can be a cost-effective path to crypto retirement investing.
