How to Invest Self-directed IRA LLC in Bitcoin Cryptocurrency (Gemini, Coinbase, Kraken)

[@mattrobinson4616]

Very good webinar - short and to the point - wish I had gone with you as I have a few questions 👍🏻

[@mysolo401kfinancial3]

Glad it was helpful!

[@aaronbarkeramoebica]

I recently mrved funds via a ROTH conversion from a traditional IRA. How do I move the convested funds from in the ROTH account into a ROTH LLC without creating a taxable event?

[@mysolo401kfinancial3]

Please see the answer posted on our Community site:mysolo401k.net/mycommunity/forums/discussion/qa-how-to-move-funds-to-roth-ira-to-invest-in-crypto/

[@mysolo401kfinancial3]

Please join (it is free) mysolo401k.net/mycommunity/wp-login.php

[@edubld6009]

Can the LLC be funded with existing crypto holdings? In other words, can i open a coinbase acct under new Llc, then send or invest my personal crypto holdings to new llc coinbase acct or wallet? Looking to save on taxes w existing crypto holdings.

[@mysolo401kfinancial3]

No - you can only invest cash from the IRA account that owns the LLC

[@jennyli1468]

What are some the top trusted self-directed IRA companies do you recommend for crypto currency? Thanks George.

[@mysolo401kfinancial3]

Please see the answer posted in our My Community site: mysolo401k.net/mycommunity/forums/discussion/crypto-ira-what-self-directed-ira-companies-do-you-recommend/

[@mysolo401kfinancial3]

Please join (it is free) mysolo401k.net/mycommunity/wp-login.php

[@krz1000]

If I have an LLC that is used for cash-based investments and trading of stocks and cryptocurrencies, can my SDIRA account invest in that LLC directly? If not, can an LLC be formed in such a way that it allows for both cash and ira dollars to be invested the same way?

[@mysolo401kfinancial3]

1) No - you cannot invest your IRA in an LLC that you own (instead you need to invest in a new LLC that is solely owned by the IRA). 2) No - the LLC is solely owned by your IRA and you can’t pool with non-retirement funds.

[@sunyun4425]

Are you allowed to do swaps and exchange crypto from a hardware wallet like Ledger Nano X? It comes with a built in exchange.

[@mysolo401kfinancial3]

Yes if the exchange account is opened under the name and EIN of the Solo 401k.

[@sunyun4425]

@@mysolo401kfinancial3 i think you misunderstood my question,,,, Holding and Swapping Crypto on a Ledger Nano Hardware wallet does not use any account with an exchange, you just use it, no identification or EIN required,,, its non custodial service, you hold the private keys,,, You might fund the wallet using a credit or debit card linked to the LLC checking account for example, or you can fund an exchange account and withdraw the crypto to a hardware wallet for "offline storage" But once the crypto is on the hardware, you can do swaps between currencies on the hardware wallet ,,, is this allowed?

[@mysolo401kfinancial3]

You certainly would need a separate wallet for retirement funds. It appears that the scenario that you describe is akin to a private transaction where the crypto is traded outside the context of an exchange. If so, you would want to be certain that the transaction is with a non-disqualified person and that the transaction is not tied directly/indirectly with a transaction involving cryptocurrencies that are owned outside of your retirement account.

[@chayannearroyo7738]

Is an existing SIMPLE IRA from a former employer eligible to rollover funds into an new Roth IRA?

[@mysolo401kfinancial3]

Yes if you have had it for 2 years - see more www.irs.gov/pub/irs-tege/rollover_chart.pdf

[@GrandRoofingInc]

You seem to know what you are talking about in this area. What is a good exchange that allows a solo 401k trust?

[@mysolo401kfinancial3]

We have many clients that have accounts at Coinbase, Gemini and Kraken to provide some popular examples

[@fujarka00]

I opened llc and Gemini account I purchased btc under my IRA Roth account can I withdraw to my ledger nano s ? And how I will report market value to the irs if I keep on cold storage and I will not have statement from Gemini???

[@mysolo401kfinancial3]

I understand that LLC is owned by the Roth IRA. If the cryptocurrency exchange will allow the crypto to be transferred to a physical wallet, this is acceptable provided that it is a dedicated and segregated wallet (i.e. not used to store personal assets) which is not stored at the Roth IRA owner's physical residence but rather in a safety deposit box associated with a bank account in the name of the same LLC. The value of the crypto stored on the wallet can be calculated based on the fair market value and amount of such particular cryptocurrency.

[@chayannearroyo7738]

What do physical wallets have to do with cryptocurrencies? Could you elaborate on how is it safer?

[@mysolo401kfinancial3]

One reason that some choose to use is a physical wallet is to mitigate the risk of leaving the cryptocurrencies on the exchange and the exchange later closes/goes under.

[@sunyun4425]

He's referring to a hardware crypto wallet like a ledger nano which allows you to withdraw your crypto from the exchange. So you'll be in control crypto on an "offline" storage device on your personal possession. As compared to storing on the exchange which can be hacked and stolen.

[@prioritymail1]

Is there any advantage to creating an LLC but not having an IRA account. I'm already 65 and just looking a way to get the best tax advantages for crypto gains.

[@mysolo401kfinancial3]

You need to invest a retirement account (such as an IRA) to obtain the tax advantages.

[@businessskyenginee2004]

is an llc the only entity type you can use? can i use a dba with an ein as a sole prop?

[@mysolo401kfinancial3]

You can’t use a sole proprietor- it needs to be an LLC.

[@nkosivuma]

Two questions: (1) When a Self-directed IRA LLC gets a non-recourse loan, should the lender send the funds directly to the Self-directed IRA LLC bank account OR the IRA Custodian/Administrator? (2) Can one day trade in a Self-directed IRA LLC's crypto exchange account?

[@mysolo401kfinancial3]

1) If the LLC is borrowing funds via a non-recourse loan, the LLC would be the borrower and the funds would be provided by the lender to the LLC 2) While the LLC may open a brokerage account to trade stocks, etc., some brokerages have high minimum balance requirements to open a brokerage account.

[@Tealrock]

Hi George. Thank you. When opening an account for a self-directed IRA on a crypto exchange, should we open the account as a business account or as a personal account in the name of the LLC? Many thanks.

[@mysolo401kfinancial3]

What is most important is that the account is opened in the name of the LLC and EIN of the LLC that is owned by your IRA regardless of whether the exchange categorizes the account as a business or personal account in the records of the exchange. That said, the account will typically be a business account in the records of the exchange.

[@ldstiesto]

Great video! Can a W2 employee open a self-direct retirement acc?

[@mysolo401kfinancial3]

Good question! Posted answer in our community site: mysolo401k.net/mycommunity/forums/discussion/can-a-w-2-employee-open-a-solo-401k/

[@mysolo401kfinancial3]

Please join conversation (it is free):mysolo401k.net/mycommunity/wp-login.php

[@chrisnew3297]

I'm studying accounting and tax and I have a certificate in applied fiance and economics, how can I do all this myself I really don't see why I need a custodian or a financial intermediary seems like a giant fee shakedown

[@mysolo401kfinancial3]

Under the IRS rules the IRA account needs to be at a financial institution or trust company (specifically one that allows for investments that you want such as an LLC).

[@joecote4702]

Is there a minimum dollar amount that a self-directed IRA needs in order to open an account at the Gemini exchange to invest in crypto currency?

[@mysolo401kfinancial3]

Our understanding is that there is no minimum but check with Gemini to confirm please.

[@michaeltracy7577]

If still monitoring I have an ira Roth LLC now, I also am investing on a personal basis can or is it beneficial to invest as an LLC with crypto with staking and mining, in addition can that new LLC also create another retirement plan for tax deferred or another tax free Roth plan, in addition to the one that is now established?

[@mysolo401kfinancial3]

While not quite following your questions, please note that an LLC that is merely an investment vehicle can't sponsor a Solo 401k plan.

[@TranquilTonations777]

What's the difference between an IRA LLC and a traditional IRA?

[@mysolo401kfinancial3]

Thank you for your question. In simple terms: investments and control. With a traditional IRA (e.g. at a brokerage such as Fidelity or Vanguard) you are limited to their investment options (i.e. stocks, mutual funds etc.) whereas with our IRA LLC you can invest in a wide range of alternative investment such as real estate, notes, cryptocurrency, etc. and you have checkbook control over your money. Click here to learn more www.mysolo401k.net/ira-llc/ira-llc-faqs/

[@TranquilTonations777]

@@mysolo401kfinancial3 How much does it cost to set up a IRA LLC? Is there a monthly cost to maintain it? If so, is there a way I can set it up myself for free?

[@mysolo401kfinancial3]

See pricing here: www.mysolo401k.net/ira-llc/ira-llc-pricing/

[@AdrianMoseley]

I created an LLC for my business, and would like to start this process with funds from my 401k under my employer. Is this possible? I was hoping I could rollover the funds from my 401k.

[@mysolo401kfinancial3]

You can’t transfer funds from your 401k to the LLC that you use to operate your business in order to invest in cryptocurrency. Instead, if you were eligible to set up a solo 401(k) (e.g. because you don’t have any full-time employees working for you) you could set up a solo 401k that allows you to invest in cryptocurrency and then open an account at the cryptocurrency exchange in the name of the solo 401(k) in order to invest.

[@gilsoto4142]

I already have a Coinbase account since 2017 and recently opened a self directed IRA LLC. Can I tie my Coinbase account to the LLC account and buy more Bitcoin?

[@mysolo401kfinancial3]

No you need to open a new account under the name and EIN of the LLC. You need to keep retirement and non-retirement assets segregated.

[@gilsoto4142]

@@mysolo401kfinancial3 Thank you

[@rmoseley100]

I have an old 401k from an old employer that has been sitting there idle since 2015. I am looking for a Self directed IRA that allows for Crypto trading and Stock investing. Is this possible?

[@mysolo401kfinancial3]

Yes - you can certainly rollover funds from your former employer plan to our IRA LLC and then invest in crypto. www.mysolo401k.net/open-ira-llc-account/

[@earlw3638]

Yes you can. I just did this.

[@MetalBum]

This is huge. So if bitcoin goes up 10X your taxes are 0 on a LLC ROTH. go with the ROTH

[@mysolo401kfinancial3]

Yes you have the potential for tax-free growth. If you take the funds a qualified Roth distribution then the gains are tax-free. www.mysolo401k.net/what-is-a-qualified-roth-solo-401k-distribution/

[@mysolo401kfinancial3]

As mentioned in the video, here is a link to the webinar on using a Solo 401k to invest in cryptocurrency: www.mysolo401k.net/investing-solo-401k-in-cryptocurrency-and-bitcoin/

[@PinkyFloyd5529]

Thanks for this video! I’m going to send you an email describing what I want to do & we’ll go from there.

[@mysolo401kfinancial3]

Sounds good!

[@dannyl6507]

Who has the keys? Not your keys, not your bitcoin.

[@mysolo401kfinancial3]

The solo 401k owner as the trustee of the plan.