mountain west ira

Cryptocurrency / Digital Assets in a Self-Directed IRA

What are Digital Assets?

Digital assets include cryptocurrencies like Bitcoin and Ethereum, stablecoins, and non-fungible tokens (NFTs). They are recorded on blockchains—secure, cryptographically verified ledgers that track and validate transactions.

For tax purposes, the IRS classifies digital assets as property, rather than currency. As a result, every purchase, sale, or exchange outside of a retirement account may be a taxable event. However, within an IRA, gains and losses generally follow the same rules that apply to other IRA assets—tax-deferred in a Traditional IRA or potentially tax-free with qualified Roth IRA distributions

Why Hold Digital Assets in a Self-Directed IRA?

  1. Diversification: Broaden your retirement portfolio by adding an emerging asset class alongside traditional self-directed options such as real estate, private placements, or metals.
  2. Tax Treatment
  • Traditional IRA: Earnings grow tax-deferred; taxes generally apply when you take distributions.
  • Roth IRA: Qualified distributions are generally tax-free; provided you meet age and holding-period requirements.
  1. Direct Control: As the account holder, you decide what to buy, sell or hold - just as you do with other self-directed investments.

Note: Digital assets can be volatile and regulations are evolving. Carefully review risks and reporting requirements before proceeding and seek professional tax/legal guidance as needed.

Key Considerations

  • IRS Reporting: Digital asset transactions must be disclosed on tax returns (Forms 8949 and Schedule D).
  • Taxable Events: Every trade, sale or exchange of digital assets is a potential taxable event.
  • Volatility: Digital assets can fluctuate rapidly in value. Evaluate your own risk tolerance.

How It Works at Mountain West IRA

Mountain West IRA provides administration only for your self-directed IRA. If you choose to invest in digital assets, the process is:

  1. Open a Self-Directed IRA with MWIRA.
  1. Open a Trading Account with a Digital Asset Platform.
  • At this time, ETZ Soft, Inc. is the only platform available for MWIRA clients.
  1. Authorize the Investment.
  • This instructs MWIRA to send funds directly to your ETZ Soft, Inc. account.
  1. Begin Trading.
  • Once funded, you may buy and sell digital assets directly within the ETZ Soft, Inc. platform.
  • All trades are initiated and directed solely by you, executed on the platform, and remain under your IRA with MWIRA serving as the third-party administrator.

Have Questions?

For assistance with forms, timelines, or account requirements, please contact MWIRA’s Transactions Department at Transactions@MWIRA.com or by phone at 208-510-0859.

Important Disclosures:

Cryptocurrency Purchase Forms

Cryptocurrency Purchase Kit

Complete this form to authorize the purchase of cryptocurrency through your MWIRA account.

PDF Downloade-Sign

Direction of Investment - Cryptocurrency

Submit this form to direct MWIRA to allocate funds toward a specific cryptocurrency investment.

PDF Downloade-Sign

Cryptocurrency Maintenance Forms

Disclaimer & Indemnity Agreement - Cryptocurrency

Review and sign this agreement to acknowledge the risks and responsibilities associated with cryptocurrency investments.

PDF Downloade-Sign

Funds Request Form

Complete this form to request cash funds held at ETZ Soft, Inc. be transferred back to your MWIRA account.

PDF Downloade-Sign
Mountain West IRA does not offer investment, tax, financial, or legal advice to clients. Individuals who believe they need advice should consult with the appropriate professional(s) licensed in that area.