How to Buy Bitcoins in Your IRA

Not a day goes by when at least two or three different different articles appear about bitcoins. Even I've contributed to it by writing How to Invest in Bitcoins Without Owning Bitcoins, which I posted a couple weeks ago.

 Bitcoins in Your IRA

Now some investors are looking for ways to put bitcoins away for their retirement, and have a tax-advantaged way of doing so. Fortunately for bitcoin investors, there is a way to put bitcoins in an IRA or a 401(k) plan. According to a recent article in MarketWatch, there are three self-directed IRA trust companies that allow bitcoins in retirement plans: Entrust, Equity Institutional, and PENSCO. In addition, Fidelity reportedly allowed one investor to invest in bitcoin through his self directed IRA. However, Fidelity has stated that they will no longer allow bitcoin investments at this time.

What a Self-Directed IRA Is

A self directed IRA provider is a trust company that allows investors to invest their retirement funds in atypical investments. In other words, instead of investing in stocks or bonds or bank accounts, you could invest directly in real estate or in theater productions or horses (or bitcoins). A couple of these trusts even allow investing in private businesses.

For a free list of companies connected to bitcoins in some way, go to WallStreetNewsNetwork.com.