In January of 1999, Peter Thiel paid $0.001 per share — yes, just one tenth of one penny — for 1.7 million shares of a new startup company: Paypal. He bought the shares within a Self-Directed Roth IRA, which had a contribution limit at the time of only $2,000 per year. His Paypal shares only cost $1,700.00.
Today, Thiel’s IRA is worth north of 5 billion dollars. And thanks to the tax-advantaged structure of the Roth IRA, when he’s able to cash out in 2027, he won’t pay a single dollar of tax on his gains.
We’re here to help you do the same thing, only with Bitcoin.
Hodling Bitcoin within a Self-Directed IRA
In general, regular IRAs are limited to securities like stocks, bonds, and ETFs. But Self-Directed IRAs (SDIRAs), also known as Checkbook IRAs, allow the owner to hold different assets, like precious metals, real estate, company shares, and yes, cryptocurrency. While an SDIRA is administered by a custodian or trustee, it’s directly managed by the account holder, hence the self-directed moniker.
So, just like Peter Thiel did with his Paypal shares, you can buy and hold Bitcoin within an SDIRA. When you retire and cash out, you won’t pay a single dollar in taxes on any appreciation of the Bitcoin price.
We can help you through the entire process, including:
- Starting your Limited Liability Company, which will be the legal owner of the Bitcoin
- Drafting your Operating Agreement
- Engaging a Trustee to administer the SDIRA
- Applying for a business bank account with no ongoing fees or minimums
- Buying Bitcoin through the LLC with our partner, Swan Bitcoin.
- Buying a hardware wallet and transferring the Bitcoin to cold storage, where you control your own private keys (if you don’t want to leave it on the exchange)