How Crypto IRAs Work (with iTrustCapital as Example)

A Crypto IRA allows you to invest in digital assets like Bitcoin, Ethereum, and other cryptocurrencies while still enjoying the tax advantages of traditional retirement accounts. Using iTrustCapital as an example, here’s how the process works step by step:

1. Choose Your IRA Type

iTrustCapital supports multiple IRA options:

  • Traditional IRA – Contributions may be tax-deductible; taxes are paid on withdrawals in retirement.
  • Roth IRA – Contributions are made with after-tax dollars; withdrawals in retirement are tax-free.
  • SEP IRA – Ideal for self-employed individuals or small business owners, allowing higher contribution limits.

Selecting the right account type determines your tax treatment for crypto gains.

2. Fund Your IRA

You can fund your iTrustCapital IRA in two ways:

  1. Rollover from an existing retirement account – Move funds from a 401(k), Traditional IRA, or another eligible account without triggering taxes.
  2. New contributions – Deposit new funds up to IRS annual limits ($6,500 for individuals under 50 in 2026, $7,500 if 50+).

iTrustCapital provides clear instructions to ensure rollovers are tax-compliant and easy to complete.

3. Buy & Sell Crypto Inside Your IRA

Once funded, you can trade cryptocurrencies 24/7 directly within the iTrustCapital platform. Key features include:

  • Wide range of crypto assets – Bitcoin, Ethereum, and dozens of altcoins.
  • Recurring purchases – Set up automatic investments to practice dollar-cost averaging, reducing the impact of market volatility.
  • Precious metals trading – Gold and silver can also be included in your IRA for diversification.

Trades happen inside the IRA, so gains are tax-deferred or tax-free depending on the account type.

4. Custody & Security

Unlike self-custody wallets, assets in a Crypto IRA are held by an approved custodian to maintain tax advantages. iTrustCapital uses institutional-grade custodians and security measures:

  • Cold storage for crypto
  • Multi-party computation (MPC) for transaction security
  • Two-factor authentication (2FA) for accounts

This setup protects your assets while ensuring IRS compliance.

5. Benefits of Using a Crypto IRA with iTrustCapital

  • Tax Advantages – Grow crypto and precious metals without paying capital gains taxes until withdrawal (Traditional) or not at all (Roth).
  • Diversification – Add digital assets and precious metals to a retirement portfolio traditionally limited to stocks and bonds.
  • Ease of Use – Beginner-friendly platform with step-by-step guidance.

6. Things to Keep in Mind

  • Volatility – Crypto prices can fluctuate significantly.
  • Contribution Limits – Ensure you stay within annual IRS limits to avoid penalties.
  • Long-Term Perspective – Crypto IRAs are most effective when used as long-term retirement investments, not for day trading.