How to Buy Crypto in a ROTH IRA - Step by Step Guide

Foreign. Hey everybody, Mark Kohler here talking about making money inside your Roth IRA trading cryptocurrency. Now I've got other videos on mining cryptocurrency which I love, totally fun and exciting. But the best way to save taxes on trading, buying, selling, mining, cryptocurrency is to do it in a retirement account. Now some of you are like, I've already seen the comments, Mark, I want to use this money. I want to go buy a new, you know, Lexus or a new car or a new house. I don't want to wait till I'm 59 and a half. And I know a lot of the younger generation is like Mark, we're the ones trading crypto. I don't want to wait 30 years to get this. But hear me out on on two points. One is do trading in both your own name and in your ira. I'm not saying it's one or the other, just do a little of both. Because as you build that Roth IRA doing crypto, it'll be completely tax free in the future. Forget about it, leave it alone. It's there as a retirement policy, as an insurance policy that you can live the way you want to when that time comes. And it's asset protected too. No one can barely touch it in a lawsuit. The second point is I meet so many clients that are in their 40s, 50s or older that have no retirement at all and they are freaking out and it's sad, it is really frustrating and heck, I wish I had more money in my Roth IRA when I was you guys in your 20s or 30s. I wish I would have started saving more and more in a tax deferred or a tax free format along with the other investing in my own name. You can do both. Alright, so you've probably seen my other videos on how to avoid taxes in cryptocurrency, trading or in mining. But this is all about doing, just trading, owning crypto in your Roth ira. Now we're going to come back to the website here on where to set it up, but let's just do some basics. So the first thing is you've got to set up a Roth ira. Now a lot of people, Mark, I don't have money in a Roth ira. Well, there's a couple ways to get it, probably two or three. So the first step I'm going to go number one is to get money into a Roth. In fact, let's make that a little prettier here. Number one, get money into a Roth ira. Well, I'm just Going to go off the cuff here and say there's two or three ways. Number one, you make a contribution this year, you can do up to $6,000 into a Roth IRA based on your income. You might have to use the backdoor Roth IRA method. No matter what income level you're at, you can do a Roth IRA. Also, you can have a 401k at work and do a Roth IRA. So I've got other videos on that. Don't let anybody tell you, well, Mark, I made too much money. They're full of crap. Go on YouTube and type backdoor Roth Kohler, and you'll see my other video on how to do that. So the first thing is you can do a contribution. Now, I'm shooting this video right now, ironically, in March, which means you have until April 15th to do a contribution for last year. So I can always go back and put in 6,000 for the prior year up until April 15th. That's what the rule is now in 2021. So for 2020, I can go back and put my six grand in, and then I can put my six grand in for this year. So you have to look at your timeline here and go, all right, I've got April 15th right here, and this is December 31st. And let's say this is 2020 and this is 2021. So I can put any money in up to this point and count it towards 2020. And then in 2021, I can put my other six grand in. So you could get up to $12,000 there. And if you're 50 or older, you could do an extra thousand per year, but you're looking at 12K right there. And if you're like, well, I make too much money, use the backdoor Roth, so you're good to go. Okay, number two, or the second way to get money into a Roth so we can start buying crypto is you could do a rollover. You can say, well, I have an old 401k and I'm going to take my old 401k from an old job that's either sitting there, it's already been rolled out to a traditional ira. So you've got this traditional ira. You just open up a Roth account. And when you open up the Roth account, you do a conversion. Roth conversion. Now, you can convert whatever amount you want. You do have to pay taxes on it, but that's okay. Once you rip that band aid off, you'll never pay taxes again. And I've got other videos out on YouTube on the sweet Spot of doing a Roth conversion. I want to make sure I don't go into a higher tax bracket to do it. So search Roth conversion or Roth ira Sweet spot Kohler. Make sure you put the words Roth in there. I'm not liable for the video. Might see totally inappropriate. Okay, so get over there to the Roth conversion and convert what you may need. Now if you're like, I'm only going to buy $1,000 worth of crypto, then only convert a thousand over, you know, don't. But again, I'd like you to have as much Roth as possible hold of the conversation. So you could do one, a contribution, two, a rollover. Now some of you are saying, well, Mark, I'm on a pretty tight budget. I'd like to get to this point, but I'm just barely holding on and I'm trying to learn how to save and I've never even had a Roth ira. I don't know what a Roth IRA is. You're driving me crazy here. Again, I've got other videos out there to study up on this. A Diet Coke and a bowl of popcorn. Within an hour or so you're going to be an expert on this. But what I've done and with all my kids and my family, start out with an Acorns account. Acorns, I love that app. There's multiple ways to save with Acorns and I can get a little Acorns account going. Now Acorns isn't going to allow me to buy cryptocurrency or self direct in anything. They have their little algorithm of what you get to invest in and that's cool. But I'm using Acorns to save, not to invest, only to save. Now once I get a couple grand in my Acorns, and I'd suggest you start out with just $50 a week, $20 a week to start saving in your Acorns Roth. And then you can roll it into a self directed Roth. Now these self directed Roth or an SD Roth. Self directed Roth now allows you to go invest in things like crypto. Now you say, well, my Robinhood lets me buy crypto. Okay, there's different types of crypto and buying the different types of cryptocurrencies and having the flexibility to trade to what you want, you're not going to want to do that. And some of these apps like Robinhood or others, and Robinhood doesn't allow you to have a Roth IRA anyway. So I just use Acorns to save. Don't think I'm Too hopped up on acorns. Some of you are like, what does he do not know about Stash? This guy's an idiot. Just chill out. What I'm saying is, is use any sort of app that you love to save. And once you get up to a critical mass of 1,000 or $2,000, then we're going to kick it out and into a self directed Roth. So number one, you got to get money into a Roth. Number two, you're going to open that self directed Roth. So a self directed Roth ira. Now what a self directed Roth IRA allows you to do is invest what you know best. These Roths are pretty cool because you could, and you could do this with a self directed traditional IRA, a 401k Coverdell HSA. I've been teaching this for years. Just go out and do a little more YouTube searching there. Check out my channel. But with a self directed Roth ira, you're not stuck with whatever Merrill lynch or Scottrade or Ameritrade is going to let you buy. You can invest in notes, real estate, small businesses, gold, silver, or even cryptocurrency. So once you have this Roth IRA account now the, the place that I'd like you to consider, because we think it's the cat's Meow, is directed IRA. You can go to directed IRA.com and look at on the homepage right now, a new crypto ira. We're going to come to that. But you can open up a Directed IRA account in your underwear at night using the DocuSign forms. Boom, you're off to the races. You can invest this IRA in whatever you want. You can get the brokerage account and still buy stocks, bonds and mutual funds. I think Coinbase is coming out with their IPO soon. Some of you may want to be getting into that. For all you crypto fans out there, you wouldn't be watching this video if you weren't. So you can buy regular stocks, bonds, mutual funds, you can buy real estate, you can do loans, and again, you can buy crypto. So you're going to open a directed IRA Roth account. Now there's really two types of ways you can go at this. There's a lot of companies out there that are saying you can self direct your Roth and buy cryptocurrency, but it requires an llc. The LLC can be a little harder to open up your wallet, whether you use a Gemini, Coinbase, Coinbase Pro, wherever you want to go. So. But it's, that's usually what people had to do. But I got an Expedited, Expedited, faster way, which you're going to love. But let's just go through the traditional, the traditional way, you do a Roth IRA account at a self directed location, hopefully directed IRA, directed IRA.com and IRA.com then what you would do is you would open an llc. This is a single member. IRA LLC is sometimes what they're called, you get to be the manager. You're not the owner of this llc, you're just the manager. You're the beneficiary of your Roth, but the roth is the 100% owner of this LLC. So the Roth owns the LLC. You get a new ein for this LLC and you get a bank account. And when you get this bank account, wherever you go, it's just a standard llc. Do not go into the bank and say this is an IRA LLC or my IRA owns this. It'll freak them out. Just go in with your operating agreement, which a lot of times they don't even need. All they need is the articles, the ein, and you're going to go in with your driver's license and open up a business bank account. Keep it simple, the less the bank knows, the better. So don't start blabbing about what you're doing with crypto. The brains banker's brain will explode. So you want to keep it simple. You're going to go open this bank account and that's where you're going to take your Roth money. Maybe it was 5,000, 12,000, 2,000. Whatever money you have, you're going to contribute it into this llc. Now when you go to directed ira, you're going to see forms up here. Once you have your account open, you're going to be able to go to Forms and get a contribution form to open this LLC or to fund the IRA llc. Once the LLC account has money in it, then you go open up your Coinbase account. Coinbase Pro Gemini, wherever you want to go, is your platform to open your wallet. And that's where you're going to inject that fiat currency into the wallet. Now that wallet can go out and buy all sorts of currencies and you're off to the races. Now here's the beauty. There's no more taxes, you're done. Some people are like, we've got to hold it 12 months and then you can get long term capital gain or you get short term capital gain. If you hold it less than 12 months and you want to cut the tax in half, doesn't matter, all of this goes back into your Roth There is no. I'm going to even change the color here to red just to make it a little more dramatic. No tax. There's no tax in this whole equation. Your Roth gets the money. If you can build that Roth and snowball it, you'll have hundreds of thousands of dollars within years, if not a million dollars down the road. And I've got other videos. Million Dollar Roth. Type that in your YouTube channel. You're gonna love it. So I'm gonna build this Roth tax free, asset protected, and I can pull that money out when I'm 59 and a half tax free for the rest of my life. Now, if you want to still go trade crypto, do it in your own name in another wallet, and you can take that money out or hold it 12 months, pay capital gains, all those other little strategies. That's cool. Go buy groceries, whatever you want to do. But that wallet is in your name. This wallet is in the name of the LLC that's owned by your Roth. Okay? Now, that was option one. And most people hate this because it takes time. You got to open the account, you got to open the llc. With our law firm, which is. We've been doing it 20 years. 800 bucks to open the LLC. Very affordable. You can pay the money, your Roth can pay the money. You get this LLC going, then you got to go open the wallet. I'm opening some wallets right now in a name of an llc. Just see how long it's taken right now. So this. A lot of people think this is kind of a pain. So we want to go to option two. This is where it took a lot of negotiation to get put together. We love Gemini for this. Now, some of you may hate the fees at Gemini, so you may say Gemini, they take too long. They won't let me buy the currency I want. That's fine. Go over here and open up the wallet you want with your llc. But we have a fast track. So here, you take your deal up, and you open up a crypto Roth ira. I'm going to call it a cross, a crypto Roth. This goes out and immediately opens a wallet in Gemini. Within hours or days, Boom, you're going as quick as you can, get the money into your Roth. We can start to get that Gemini wallet created. Done. No need for llc. Done. The wallet is owned by your Roth ira. You put the money in your Roth like we talked about, those two or three other methods. It's in the Roth, and the Roth owns the Gemini wallet. You're off to the races. Within minutes. Right? So we're moving along. Now. If you go to Directed Iraq right here on the home page, you can look at the new crypto IRA by directed ira. So this, you could actually do a traditional ira, or you could do a Roth ira, but of course I love the Roth. But you go open the crypto IRA fund account, you authorize the money to be sent to Gemini, Gemini trading account owned by your IRA, and boom, you're trading Bitcoin plus 40 other types of crypto. Now, some of you may be truist and you're like, well, I don't like what Gemini gives me or whatever. Okay, that's cool, whatever. But the nice thing is you just saw a little pop up there. You can call and talk to a real person. Is that fascinating? It's not like Facebook or YouTube and some of these crypto companies. You can't even talk to anybody. But you can call directed IRA and say, walk me through it, send me the form. I'm a little nervous here. What do I do? And you just saw a pop up of a person that can start answering questions. They are wonderful for this. There's also some videos here. A video of me, how to invest in Bitcoin and other crypto for a whole hour. Then we do a monthly webinar and this was a step by step overview investing your IRA in Bitcoin and crypto. Watch these videos, you don't have to buy, you know, set up your account right away. You can watch these videos for free and see how they're going. Here's the fee schedule 295 to set it up and a 1% trade fee at Gemini. That's. That's it. And. Oh, sorry, it's 1% with directed IRA and then the.25 to 0.35 of 1% trade fee with Gemini and you're off to the straight races. And there's a fee schedule PDF you can download. And here's the other crypto accounts. You can have a crypto Roth, a crypto traditional ira, a crypto health savings account. What? You kidding me? Crypto SEP IRA, a crypto Coverdell College Savings Account, a crypto Solo 401k and a crypto Roth IRA conversion. So if you're going to convert like at the beginning, that video when I was talking about right here, where you can say, I'm going to take money out of my old 401k, so here's my old 401k, go to traditional and convert it to a Roth. That's going to do crypto, then you would use the Roth IRA conversion crypto. There you go. So I want to get that IRA set up and then convert it to crypto. But you don't have to open an IRA account and a Roth account, you can do it all in one. So make sure you talk to the team before you just start setting accounts up. If you have questions, here's the steps to go through FAQs, boom, bada bang and you're in business. So in summary, I just wanted to point out these two options. You can go through the Roth to LLC to a wallet to give you maybe a little more flexibility. You can also pool money with multiple Roths. You could have a multiple member LLC with multiple Roth IRA accounts. Or I can just say I'm going to open up a Gemini wallet right in my Roth and I'm off to the races. You go either way. If you want a consult with one of our tax lawyers at our office, if you're setting up an LLC, it's included that whole hour with that 800 bucks. Or, or you can say, hey Mark, I just want a consult for an hour with one of your IRA LLC, IRA investing tax attorney specialist, 400 bucks. We want to save you 10 times that and help you make 100 times more. So if you've been unfamiliar with working with tax lawyers or accountants or lawyers and you're just a little more intimidated by that, give us a shot. Set up a half hour pay for a half hour consult. You'll be shocked at what it feels like to have a real lawyer accountant helping you. And so if you want to call the law firm, I'll give you that. It's 435-586-9366. Also, if you want to sign up for our free newsletter, get my free ebook. You can just click down below in the description. Get that going. We give away so much information for free. We have a weekly podcast called the Directed IRA Podcast. It's out there on everything. So get over to itunes and consider that. So anyway, lots of options here and I think how to trade crypto and a Roth IRA is just such an exciting thing and hope that you can get started making money in your own name and in your Roth ira. Do both. Kill it. Do both. Alright, thanks everybody. See you around. See you on the podcast.