Swan IRA is one of the best ways for US residents or taxpayers to hold Bitcoin in a tax-advantaged way. The Swan IRA is not available to international customers.
We offer both a self-directed Traditional IRA or Roth IRA, with Bitcoin held in a legal, regulated trust account. Both Traditional IRAs and Roth IRAs have tax advantages. Traditional IRA’s typically have pre-tax contributions that grow tax-deferred until disbursement. While Roth IRA’s typically have post-tax contributions that grow tax-free.
Traditional IRAs can accept annual contributions (with limits varying by owner’s age), transfers from other Traditional IRAs, or rollovers from other pre-tax accounts like a 401(k)’s, solo401(k), 403(b)’s, 457, SEP, SIMPLE IRA, etc.
Roth IRAs can accept annual contributions (with limits varying by owners age), transfers from other Roth IRAs, or rollovers from other post-tax accounts like 401(k) Roths.
Swan IRAs cannot receive transfers from a Health Savings Account (HSA).
Read more about IRAs at this IRS website: Individual Retirement Arrangements (IRAs) | Internal Revenue Service (irs.gov)
Does the Swan IRA hold Bitcoin in a custodial or non-custodian approach?
The Swan IRA holds Bitcoin in a custodial legal trust account at Prime Trust, in your name as the beneficial owner. Each account has a unique ABA and account number. Bitcoin is held by Prime Trust, a regulated trust company.
Can I self-custody my bitcoin from my IRA?
For our custodial IRA service, Bitcoin can not be withdrawn into self-custody. Bitcoin can be sold and proceeds disbursed under standard IRA disbursement rules.
If you have a Checkbook IRA LLC/Trust, you can open a business account and self-custody the bitcoin from this account. You can open a Checkbook IRA account using the following link:
Open a Checkbook IRA LLC/Trust
Can I open multiple Swan IRA accounts?
Yes, you can open multiple Swan IRAs accounts.
Can I open a ‘Back Door Roth’ at Swan?
You can open a Roth IRA at Swan, complete other contributions and conversions with another financial institution such as Fidelity or Vanguard, and then complete a Roth transfer into the Swan IRA.
Can I open a Swan IRA for my children who are under 18?
Minor IRAs (also called Custodial IRAs) are not available through Swan at this time. These accounts would legally shift to the child at age 18 and require a more complex structure. We plan to build this functionality and offer it in the future.
What is the pricing of the Swan IRA?
The transaction fee is 0.99%, funded from IRA funds. This fee will be taken out when the funds are transferred over.
The Swan IRA has a flat monthly administration fee of $20 until a balance of $100,000. Above $100,000, the monthly administration fee is 0.02083% of the balance at month end (0.25% annually). All administration fees will be charged monthly from outside the IRA balance.
The Swan IRA has a $25 account closure fee.
Can I move retirement funds from other platforms to Swan's IRA?
Yes. You can move existing retirement funds into the Swan IRA via IRA transfers or rollovers.
How do I close my Swan IRA or move funds to another provider?
To close your Swan IRA or move funds to another provider, please contact us at firstname.lastname@example.org