How To Open A Gemini Account For Your IRA LLC

Transcription

How to Open aGeminiAccount foryourSelf-directedIRA LLC

“A to Z” Guide – Open Self-directed IRA LLC account at Gemini What is Cryptocurrency Taxation Considerations How to Invest/Buy with Funds in an IRA LLC Establishing & Funding IRA LLC How to Open IRA LLC Account at Gemini Purchase Storage Practical Tips Get more info

What is Cryptocurrency? Per IRS Revenue Ruling 2019-24:oo Virtual currency is a digital representation of value that functions asa medium of exchange, a unit of account, and/or a store of value.Cryptocurrency is a type of virtual currency that uses cryptographyto secure transactions that are digitally recorded on a distributedledger, such as a blockchain.Popular cryptocurrencies: Bitcoin Ethereum Litecoin

IRS View on Taxation ofCryptocurrency The IRS has issued guidance that cryptocurrency will be treated as propertyfor federal tax purposes (see e.g. IRS Notice 2014-21). Outside of a retirement account: the income or gains from the sale ofcryptocurrency will be subject to capital gains tax rates (short-term or longterm as applicable). Inside a retirement account: the gains/income derived from acryptocurrency investment are tax-deferred (or potentially tax-free in thecase of a Roth Solo 401k account). Possible exception: If you invest your IRA LLC funds in miningcryptocurrency, the income generated may be subject to unrelatedbusiness income tax (UBIT) if the mining is considered an active trade orbusiness.

Steps to Invest Self-directed IRA LLCin Cryptocurrency

5 Steps

The Steps Broken Down

The Steps Continued

Tidbits

The IRA LLC Explained & Setup ProcessWhat is it?uStems from Famous Court CaseWhen an LLC is 100% owned by an IRA or u The tax court ruled in favor of a taxpayer incombination of IRAs, it is commonlySwanson versus the Commissioner, 106 Taxreferred to as a Self-Directed IRA LLC.Court 76, 1996, essentially ruling that the initialfull investment in an entity by an IRA was 7571

Why an IRA LLC?Alternative InvestmentsCheckbook ControlFees & Timely InvestmentsOnce funded, investments are madethought IRA LLC. Alternative investmentsinclude real estate, tax liens, preciousmetals, trust deeds, private companyshares and Cryptocurrency , to name afew.IRA LLC investments are made bywire or by writing a check fromthe LLC bank account. As thenamed LLC manager, you are infull control over placing the IRALLC investmentsMore IRA investors are opting for theSelf-Directed IRA owned LLC togreatly reduce processing fees,holding fees and to process timesensitive investment such as realestate and tax liens.

The IRA LLC Setup Process123File article oforganization withthe state.Obtain employeridentificationnumber (EIN) forthe LLC.Draft the LLCOperatingAgreement thatcontains therequired IRA andIRS language.4Open the selfdirected IRA5Fund the selfdirected IRA bytransferringformer employerand or IRA funds.6Open the LLCbank accountand fund it withself-directed IRAfunds.

Sample Cryptocurrency Account Setup –Gemini Getting Started: Submit onboarding questionnaire & then Gemini will contact you with an onboardingpackage https://exchange.gemini.com/register/institution

Enter name ofLLC Enter yourName, emailaddress andlocation Choose“Personal/Private InvestmentVehicle”

Download theInstitutionalAccountApplication

Enter Name of LLCEnter Address of theLLC (typically youraddress)Enter Date that theLLC was formedSKIP - CRD, MPID,NFA ID and LEI are“N/A”Enter your Name,Phone & Email as thePrincipal ContactPersonEnter State wherethe LLC was formedEnter EIN of the LLCEnter your phonenumber

Complete asapplicable (e.g. ifyou have a nonretirement accountat Gemini)Enter “IRA LLCinvestment account”SKIP – No websiteEnter “No” if the LLCbank account is in thesame state that the LLCwas formed (otherwiseenter applicable state).Select “No” for All

Select “No””Enter the state where theLLC is registered unlessyou live in a differentstate and in that caseenter the state whereyou live.Enter “The solepurpose of the LLCis to invest my ownIRA funds.”Select “No””Answer thequestions to the bestof your ability

Enter “LLCManager”Enter your personalinformationNote: If more than one authorizeduser (e.g. multiple LLC Managers),complete for each person

Enter your personalinformation If LLC owned by oneperson’s IRA account(s),enter 100% as “IndirectBeneficial Ownership” If LLC owned by IRAaccounts of two or morepersons, enter eachperson’s applicableindirect beneficialownership percentage.Note: SKIP “Beneficial Owners(Entity)” section because the LLCis not owned by another entity.

Enter your nameEnter “Manager”Sign and Date (wetor electronic)

Enter your nameEnter “Manager”Sign and Date (wetor electronic)

How to Open IRA LLC Account at Gemini Additional Documentation Needed: ID (e.g. passport or state-issued ID card) for all beneficial owners and authorizedsigners on the account including DOB & SSN Copy of Aritcles of Organization & Operating Agreement Included in the IRA LLC Documents Signed w9 form Proof of source of wealth Provide IRA LLC bank account statement If applicable, statement that saved funds as employee (or self-employed personas applicable) and related documents (e.g recent paystub, screenshot of LinkedInprofile, membership in professional association(s), etc.)

How to Open IRA LLCAccount at GeminiAdditionalDocumentationNeeded: Signed W-9 Form

Sample Cryptocurreny Account Setup –Gemini (continued) Funding the account with Fiat Dollar? Yes – the account can be funded with US dollars The name on the funding account must match the name of the LLC Tip: While Gemini allows the account to be funded from an account in thename of the beneficial owner of the LLC, under the IRA LLC rules the LLCmust only be funded from the IRA account Processing Time? Approximately 2 weeks

Practical Tips:Investing IRA LLC funds in cryptocurrency Opening an Account at a Cryptocurrency Exchange Name and EIN of the LLC owned by your IRA (consider tax reporting by the exchange) Funding an Account at Cryptocurrency Exchange Confirm that the account can be funded with Fiat money Wire/ACH funds from a bank account in the name of the LLC owned by your IRA Do not fund from personal account per IRA LLC funding rules Store Separate Physical Wallet in Safety Box associated with LLC Bank Account Private Transactions Confirm that the seller or buyer is not a disqualified person to ensure that you don’t commit aprohibited transaction Do not combine or “tie” the transaction with non-retirement transactions

Solo 401K:Learn More! business@mysolo401k.net (800) 489-7571

The IRA LLC Setup Process. 1. File article of organization with the state. 2. Obtain employer identification number (EIN) for the LLC. 3. Draft the LLC Operating Agreement that contains the required IRA and IRS language. 4. Open the self-directed IRA. 5. Fun