We know that millions of Americans already invest in Cryptocurrency
For those who have invested, the process looks something like this...Set up an account at an exchange, send funds to the exchange, purchase a hardware wallet, set up the wallet with a series of codewords known as keys, write the words on a piece of paper, make trades on the exchange, send your crypto to your hardware wallet, store your wallet and ‘keys’ somewhere “safe.” Then reverse the process to trade again. It’s a complicated and intimidating process to say the least.
This process also creates a big risk with storing crypto assets. It creates a single point of failure. If someone were to access the device or get access to the key words, one could easily replicate the wallet and steal all the assets stored on the device.
Additionally, as recently highlighted in numerous articles, the IRS wants their cut of cryptocurrency gains. All trades must be tracked and gains reported yearly to pay capital gains tax. If a position is held for less than one year it is short-term capital gains and taxed as ordinary income. If held for over a year it is long-term capital gains which is capped at 20% federal and regular state income tax where it applies.
The iTrustCapital Solution starts with a simple to use client interface that can be accessed from any device.
Once your account is established, trades can be executed in just 3-clicks. From there you can logout and not have to worry about storing your cryptocurrency.
iTrustCapital has partnered with Curv. Curv is an institutional Grade Wallet built on multi-authentication protocols that are industry standard for the banking and military sector. This solution eliminates single points of failure like private keys and individual persons by splitting cryptographic signatures. With Curv you will have the same level of secure storage as hedge funds and institutional investors.
What many consider to be the best benefit of an iTrust account is that there's no need to deal with the IRS because all of the accounts with iTrust are IRAs. When investments are made in IRAs there are NO taxable events. You can trade as often as you’d like without having to report to the IRS. And all your gains are either tax-deferred or tax-free depending on what type of IRA you have.
Let's look at the primary types of IRAs. The most common is a Traditional IRA which is funded with PRE-tax dollars and grows tax deferred. Meaning you don’t pay any taxes until funds are pulled out of the account, preferably during your retirement years. At that time the distribution is taxed as income based on your tax bracket at that time. The idea is that you have a lower tax-bracket in retirement than in your prime earning years. Next is a Roth IRA, which is funded with POST-tax dollars and grows tax-free as long as no distributions are taken before the age of 59.5. Lastly, a SEP IRA is for business owners. A SEP has the same tax treatment as a Traditional IRA but with much larger contribution limits, which we will go over shortly. Some general IRA info to be aware of ….
There are 4 ways to fund your new IRA
A rollover from an employer plan like a 401k, 403b, 457 or TSP. These accounts can be rolled into an IRA without penalty or creating a taxable event. As long as you’ve either left the job for any reason or are over the age of 59.5.
A transfer is from an existing IRA. Any IRA can be transferred without any penalties or taxable events
A contribution can also be made to fund your IRA. For 2019 the contribution limit for a Traditional or Roth IRA is $6,000 if you are under 50 yrs old or $7,000 if you are over 50 yrs old. The maximum contribution to a SEP IRA is $56,000
Lastly, you can fund your account with an IN-kind transfer from an existing Bitcoin/Cryptocurrency IRA. If you already have crypto assets in an IRA and maybe you're tired of the high fees you can transfer your account without liquidating your assets.
iTrust has partnered with Sunwest Trust, an established IRA custodian. They have been in business for decades and have over 11k clients. Sunwest received its Trust Powers from the state of NM in 2003. Noteworthy…(read)
The iTrust Ecosystem combines all the necessary components to execute trades compliantly within IRAs. We connect the custodian to the exchanges to institutional storage and wrap it in an easy to use client interface.
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