As of now, you cannot buy Bitcoin in your Vanguard IRA. However, that doesn’t mean that you can’t use cryptocurrency in your retirement account.
Here’s a look at how you can get exposure to Bitcoin and other digital assets inside of your Vanguard IRA.
In case you’re not familiar, an IRA is an individual retirement account that allows you to save for retirement with certain tax benefits. There are two main types of IRAs: traditional and Roth.
With a traditional IRA, you get a tax deduction for the contributions you make to the account. With a Roth IRA, your contributions are made with after-tax dollars, but you don’t have to pay taxes on the withdrawals you make in retirement.
Now that we’ve got that out of the way, let’s take a look at how you can use cryptocurrency in your Vanguard IRA.
The first thing you need to do is set up a self-directed IRA with a company like Rocket Dollar or BitIRA. A self-directed IRA is simply an IRA that allows you to invest in alternative assets like real estate or cryptocurrency.
Once you have set up your account, you will be able to transfer funds from your Vanguard account into your self-directed IRA.
Once the funds are in your self-directed IRA, you can then use them to purchase Bitcoin or other cryptocurrencies. You can do this through a cryptocurrency exchange like Coinbase or Binance.
Be sure to transfer the cryptocurrency into a wallet that is either hosted by the exchange or is a hardware wallet like the Ledger Nano S for security purposes.
And that’s it! You now have cryptocurrency stored inside of your Vanguard IRA. Just remember that any gains you realize on your investment will be subject to taxes when you eventually withdraw them in retirement.
So there you have it – even though you can’t buy Bitcoin directly inside of your Vanguard IRA, there are still ways for you to get exposure to this exciting new asset class inside of your retirement account.