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{"id":28891,"date":"2024-10-21T22:07:43","date_gmt":"2024-10-21T22:07:43","guid":{"rendered":"https:\/\/bitcoins-101.com\/2024\/10\/21\/6-steps-to-move-an-old-401k-into-a-bitcoin-ira\/"},"modified":"2024-10-21T22:07:43","modified_gmt":"2024-10-21T22:07:43","slug":"6-steps-to-move-an-old-401k-into-a-bitcoin-ira","status":"publish","type":"post","link":"https:\/\/bitcoins-101.com\/2024\/10\/21\/6-steps-to-move-an-old-401k-into-a-bitcoin-ira\/","title":{"rendered":"6 steps to move an old 401k into a bitcoin IRA"},"content":{"rendered":"

Bitcoin could be on the verge of a major new bull run. According to Tuur Demeester of Adamant Research, in his publication How to Position for the Bitcoin Boom<\/em><\/a>, we may be in the early stages of a new multi-year bull market that could propel bitcoin prices into six figures.<\/p>\n

\u201cDuring this accumulation phase, we expect bitcoin to trade in a range of $22,000 to $42,000, until a new multi-year bull market pushes it well north of $120,000,\u201d Demeester noted.<\/p>\n

Imagine securing a substantial allocation of bitcoin before this bull run begins\u2014an allocation that could appreciate completely tax-free, funded by an old retirement account that you might have totally forgotten about!<\/p>\n

Step 1: Purchase hardware wallets<\/h2>\n

The first step is obtaining the tools you need to ensure your bitcoin is secure. A hardware wallet allows you to store your bitcoin keys offline, giving you full control of your funds. <\/p>\n

Begin by purchasing a couple of hardware wallets, such as those offered by Trezor or Ledger. Unchained currently supports a range of devices, including the Ledger Nano X, Trezor Model T, and Coldcard Mk4. Check out the full list of hardware wallets Unchained supports<\/a>. <\/p>\n

For optimal security, it\u2019s recommended to buy directly from the manufacturer, but purchasing from a trusted third-party retailer, like Best Buy, is also acceptable. This is especially true in the context of multisig which eliminates any single key as a single point of failure. <\/p>\n

Make sure to get at least two wallets\u2014you\u2019ll need both to set up your Unchained IRA vault.<\/p>\n

Step 2: Create an account on Unchained.com<\/h2>\n

Next, go to Unchained and create an account<\/a>. The process is simple: provide your name, email, phone number, and create a strong password. Unchained takes your privacy seriously.<\/p>\n

Once your account is created, select the type of account you need\u2014in this case we\u2019re creating an IRA account. If you prefer personalized assistance, consider opting for Unchained\u2019s Concierge Onboarding<\/a>, where a bitcoin custody expert will guide you through every step.<\/p>\n

Step 3: Create your Unchained IRA account\u2014with no setup or account fees for the first year!<\/h2>\n

Now it\u2019s time to set up your IRA account. With an Unchained IRA, you can save bitcoin in a tax-advantaged manner while maintaining full control of your keys. There is no third-party risk because you hold the keys\u2014ensuring that no one else can access your bitcoin.<\/p>\n

Setting up an account is straightforward\u2014there are no setup fees, account fees don\u2019t start until the second year<\/a>, and you can see trading fees on our pricing page<\/a>. Unchained\u2019s IRA offers both Traditional and Roth options, allowing you to choose the best fit for your retirement strategy.<\/p>\n

Step 4: Follow the Self-Service guide for vault setup<\/h2>\n

After setting up your account, it\u2019s time to set up your multisig vault\u2014one of the most secure ways to secure bitcoin. Multisig requires more than one key to authorize a transaction, which mitigates the risks associated with custodian and exchange hacks<\/a>, bad business practices, or individual mistakes.<\/p>\n

You can set up this secure multisig configuration in under an hour using Unchained\u2019s Self-Service Onboarding. Simply follow the guide at diy.unchained.com<\/a> to get started\u2014if you\u2019re using two hardware wallets to build your vault, you\u2019ll choose the Lead custody model.<\/p>\n

Step 5: Roll over your existing 401k\/IRA<\/h2>\n

Next, you\u2019ll need to fund your new IRA, and there are a few ways to do it: an IRA-to-IRA transfer, a 401(k)-to-IRA rollover, or an annual contribution. The most common method is rolling over funds from an existing 401(k) or IRA into your new Unchained IRA.<\/p>\n

While this process can feel tedious\u2014particularly if your 401(k) administrator needs to issue you a physical check\u2014it is straightforward. Once you receive your funds, Unchained will convert them to bitcoin with our trading desk and deposit them into your IRA vault.<\/p>\n

If you already hold bitcoin in another IRA, you can do an in-kind transfer to move your bitcoin directly to Unchained without converting to cash first. If you want to learn more about how to fund your IRA, we have a full Knowledge Base article<\/a> for that.<\/p>\n

Step 6: Enjoy the benefits of tax-advantaged bitcoin<\/h2>\n

Congratulations\u2014your retirement savings are now secured in bitcoin! Unchained offers flat annual fees. Starting in year two, you\u2019ll pay a flat $250 annual fee for your IRA account.<\/p>\n

Holding bitcoin in a tax-advantaged account combines the inflation resistance of bitcoin with the benefits of an IRA. Most importantly, you remain in charge of your bitcoin\u2014not an exchange or third party. If the bull run is approaching as many suspect, the Unchained IRA could put you in position to watch your retirement savings grow.<\/p>\n

This article is provided for educational purposes only, and cannot be relied upon as tax or investment advice. Unchained makes no representations regarding the tax consequences or investment suitability of any structure described herein, and all such questions should be directed to a tax or financial advisor of your choice. Statements regarding market or other financial information, are obtained from sources that we believe reliable, but we do not warrant or guarantee the timeliness or accuracy of this information.<\/em><\/p>","protected":false},"excerpt":{"rendered":"

Bitcoin could be on the verge of a major new bull run. According to Tuur Demeester of Adamant Research, in his publication How to Position for the Bitcoin Boom, we may be in the early stages of a new multi-year bull market that could propel bitcoin prices into six figures. \u201cDuring this accumulation phase, we […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-28891","post","type-post","status-publish","format-standard","hentry","category-crypto-news"],"_links":{"self":[{"href":"https:\/\/bitcoins-101.com\/wp-json\/wp\/v2\/posts\/28891","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitcoins-101.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitcoins-101.com\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bitcoins-101.com\/wp-json\/wp\/v2\/comments?post=28891"}],"version-history":[{"count":0,"href":"https:\/\/bitcoins-101.com\/wp-json\/wp\/v2\/posts\/28891\/revisions"}],"wp:attachment":[{"href":"https:\/\/bitcoins-101.com\/wp-json\/wp\/v2\/media?parent=28891"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitcoins-101.com\/wp-json\/wp\/v2\/categories?post=28891"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitcoins-101.com\/wp-json\/wp\/v2\/tags?post=28891"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}