Pending “Checkbook IRA” Legislation No Threat to BitIRA Customers
BURBANK, Calif., Oct. 12, 2021 /PRNewswire-PRWeb/ — As Congress finalizes the sweeping budget and infrastructure bill, one provision threatens a number of companies working in the digital IRA sector. Bill Section 138314 would prevent owners of self-directed IRAs from forming single-member LLCs to invest in these assets. In other words, the days of the regulatory loophole called IRA LLC or checkbook IRA may be limited.
This is a huge development in the self-directed IRA industry because many Bitcoin IRA companies and other alternative-investment IRA companies promote the use of IRA LLCs. Some offer IRA LLCs exclusively. Therefore, to help people understand the potential changes, BitIRA, one of the nation’s top providers of crypto IRAs, has created this resource.
“This is potentially earth-shattering for many of our competitors,” said Jeremy Warner, Head of Sales at BitIRA. “For us, it’s a non-issue.”
Although they can be set up in a technically legal fashion, IRA LLCs are, according to Warner, beset with complexities. “Really, many people seek legal advice before setting one up. You pay for incorporation. Then, you have to file annual statements. You, the owner, are responsible for making sure you don’t violate any IRS or ERISA [Employee Retirement Income Security Act] regulations.” Warner shook his head. “The whole process can be a real pain.”
Warner knows this because many of BitIRA’s customers went the checkbook IRA route previously, before finding themselves struggling with the expenses and complexities required. “They’re just looking to save for retirement,” Warner explained. “Not for a part-time job filling out forms and worrying about disqualified persons and prohibited transactions. They’re just way too complex for most people’s needs.”
Why isn’t this an issue for BitIRA exactly? “We don’t do IRA LLCs,” Warner said. “It’s just too easy to get yourself in trouble with them.”
A checkbook IRA arrangement isn’t necessary to invest in alternative assets like cryptocurrencies, physical precious metals, real estate or other investments you won’t find in your 401(k). The simpler, less-expensive method of gaining access to these investments is the self-directed IRA with a traditional custodial arrangement. They work like typical retirement accounts with additional investment choices.
If so many of the companies in the self-directed IRA industry focus on checkbook IRAs, what do these proposed legislative changes mean to the industry? “A lot of companies will be forced to reinvent themselves,” Warner predicted. “At BitIRA, we’ll just keep doing what works best for our customers.”
About BitIRA:
Based in Burbank, California, BitIRA is a leading specialist in the setup and management of cryptocurrency holdings in self-directed IRAs. Founded by team members from Birch Gold Group with extensive experience in self-directed IRAs, the company was established on the belief that Americans should have easier access to the wide range of conventional and alternative assets available to hold in their tax-advantaged retirement accounts. Aside from facilitating the setup and management of digital currency IRAs, BitIRA advocates for public awareness of available investment options.
For more information about BitIRA or to sign up for a digital currency IRA, visit https://www.bitira.com.
Media Contact
BitIRA, BitIRA, +1 (800) 299-1567, info@bitira.com
SOURCE BitIRA
