Financial services technology platform BitcoinIRA is seeing massive growth in transactions as investors flock to crypto for their retirement savings, according to a CNBC report.
BitcoinIRA is a California-based firm that allows its clients to invest in crypto assets with the kind of tax breaks that come with an individual retirement account (IRA).
According to CNBC, BitcoinIRA transactions skyrocketed 24,900% in four years with the firm recording $1.50 billion in all-time transactions this month, up from just $6 million in 2017.
Chris Kline, the chief operating officer of BitcoinIRA, highlights tax breaks as a reason for why investors turn to BitcoinIRA.
According to CNBC, investors at an average income level would pay no taxes for holding their crypto assets in IRAs, but they would face the possibility of a 22% short-term capital gains tax or a 15% deduction for long-term investing if they were to use a crypto exchange.
Kline suggests that investors have a straightforward incentive to add crypto to an IRA.
“Pretty clear quantitative reasoning to put an asset like Bitcoin in an IRA setting.”
Although BitcoinIRA is seeing strong growth in transaction value and its user base, Shehan Chandrasekera, head of tax strategy at crypto tax software company CoinTracker.io, says that cryptocurrencies like Bitcoin still have a long way to go before they become available on mainstream retirement platforms.
“Generally speaking, 99% of 401(k) plans don’t offer Bitcoin services.”Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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