IRA Financial Group Announces Partner Adam Bergman Authors Article on Taxation of Crytocurrency Held in Self-Directed IRA plans

Share Article

Forbes.com article written by Adam Bergman discusses how bitcoins and other cryptocurrencies are taxed when held in an IRA or 401(k) plan.

Forbes.com article written by Adam Bergman discusses how bitcoins and other cryptocurrencies are taxed when held in an IRA or 401(k) plan

Using retirement funds to invest in cryptocurrencies, such as bitcoins could allow the investor to defer or even eliminate, in the case of a Roth, any tax due from the investment

Adam Bergman, President of the IRA Financial Group, a frequent contributor to Forbes.com, authored an article on how bitcoins and other crytocurrencies are taxed when held in a self-directed IRA or solo 401(k) plan.

Even though bitcoin is labeled as a “cryptocurrency,” from a federal income tax standpoint, bitcoins and other cryptocurrency are not considered a “currency.” On March 25, 2014, the IRS issued Notice 2014-21, which for the first time set forth the IRS position on the taxation of virtual currencies, such as bitcoins. According to the IRS Notice, "Virtual currency is treated as property for U.S. federal tax purposes.

According to Adam Bergman, the IRS tax treatment of virtual currency has created a favorable tax environment for retirement account investors. In general, when a retirement account generates income or gains from the purchase and sale of a capital asset, such as stocks, mutual funds, real estate, etc., irrespective of whether the gain was short-term (held less than twelve months) or long-term (held greater than twelve months), the retirement account does not pay any tax on the transaction and any tax would be deferred to the future when the retirement account holder taxes a distribution (in the case of a Roth IRA or Roth 401(k) plan no tax would be due if the distribution is qualified.

“Using retirement funds to invest in cryptocurrencies, such as a bitcoin IRA could allow the investor to defer or even eliminate, in the case of a Roth, any tax due from the investment, whereas, if done with personal funds, a capital gain tax would be applied,” stated Mr. Bergman. Note, Crytocurrency investments, such as bitcoins, are risky and highly volatile. Any investor interested in learning more about bitcoins should do their diligence and proceed with caution.

Adam Bergman is the President and founder of the IRA Financial Group and IRA Financial Trust Company, the markets leading provider of Self-Directed IRA LLC and Solo 401(k) plans. Mr. Bergman is also the managing partner of the law firm The Bergman Law Group, LLC. In addition, Mr. Bergman is a recognized expert on IRAs and 401(k) Plans and is the founder of the BergmanIRAReport.com and the Bergman401KReport.com. Mr. Bergman is also a frequent contributor to Forbes.com on the topic of self-directed retirement plans.

Adam Bergman, IRA Financial Group partner, has written six books the topic of self-directed retirement plans, including, “The Checkbook IRA,” “Going Solo,” Turning Retirement Funds into Start-Up Dreams, Solo 401(k) Plan in a Nutshell, Self-Directed IRA in a Nutshell, and in God We Trust in Roth We Prosper.

Mr. Bergman has been quoted in a number of major publications on the area of self-directed retirement plans. Mr. Bergman has been interviewed on CBS News and has been quoted in Businessweek, CNN Money, Forbes, Dallas Morning News, Daily Business Review, Law.com, San Francisco Chronicle, U.S. Tax News, the Miami Herald, Bloomberg, Arizona Republic, San Antonio Express, Findlaw, Smart Money, USA Today, Houston Chronicle, Morningstar, and American Lawyer on the area of retirement tax planning.

Prior to joining the IRA Financial Group, LLC, Mr. Bergman worked as a tax and ERISA attorney at White & Case LLP, Dewey LeBoeuf LLP, and Thelen LLP, three of the most prominent corporate law firms in the world. Throughout his career, Mr. Bergman has advised thousands of clients on a wide range of tax and ERISA matters involving limited liability companies and retirement plans. Mr. Bergman received his B.A. (with distinction) from McGill University and his law degree (cum laude) from Syracuse University College of Law. Mr. Bergman also received his Masters of Taxation (LL.M.) from New York University School of Law.

IRA Financial Group is the market's leading provider of bitcoin self-directed IRA retirement plans. IRA Financial Group has helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate without custodian consent.

Founded by top law firm tax attorneys, IRA Financial Group, has helped over 12,000 clients self-direct their retirement funds and invest over $3.8 billion in alternative assets, such as real estate and precious metals.

To learn more about the IRA Financial Group please visit our website at http://www.irafinancialgroup.com or call 800-472-0646.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Jaclyn Baily
IRA Financial Group, LLC
+1 (800) 472-0646 Ext: 9
Email >
Visit website