Cryptocurrency IRAs
About Cryptocurrency IRAs
A cryptocurrency IRA is a self-directed individual retirement account that allows you to invest in digital assets while enjoying the tax advantages of a Roth or traditional IRA.
An IRA can help avoid capital gains taxes if your cryptocurrency has an increase in value. For example, holding cryptocurrency in a Roth IRA can be tax free if you leave your earnings in the account until you are able to withdraw tax free. If you place your crypto in a traditional IRA, you won’t pay income taxes until you make a withdrawal from the IRA.
Cryptocurrency Products Your IRA Can Own
Investors can trade the top 50 coins listed on Coinbase including: Bitcoin, Ethereum, Cardano, Solana, XRP, Polygon MATIC, ChainLink, Polkadot, Dogecoin, Avalanche, PAX Gold, and more. For the full list of available coins visit www.etzsoft.com.
Cryptocurrency Trading & Storage
CNB Custody utilizes ETZ Soft, Inc (ETZ) for cryptocurrency trading, allowing account holders to trade crypto assets 24/7. ETZ is an independent, third party platform that facilitates digital asset retirement benefits for investors. ETZ Soft is powered by Coinbase and enables IRA account holders to buy, sell, and store their crypto investments with Coinbase.
Wallet and Cryptocurrency Security and Storage
ETZ Soft works with Coinbase Prime for all trades and Coinbase Trust Co in NY for Institutional Grade custody of all assets. This includes Coinbase's $340 million insurance.
How to get started
Our experienced staff will work closely with you by providing educational resources to assist you with the rules for IRA investing. CNB has the expertise to help guide you, answer any questions, and make the process easy. You can be assured that your calls and emails will be answered promptly and you’ll receive the attention you deserve every step of the way.
There are four ways you can fund your self-directed IRA:
Transfer funds from an IRA you have with another custodian.
Simply fill out our transfer request form to get started. Transfers do not prompt IRS reporting, taxes, or penalties because they are not considered taxable events.Rollover from another IRA custodian.
Your current custodian will send funds directly to you as account owner. You have 60 days from receipt of the funds to roll them over to another IRA to avoid taxes and penalties on the distribution. Only one indirect rollover is allowed per 12-month period.Rollover from a 401(k), 403(b), governmental 457(b) account, or other qualified plan.
These are considered direct rollovers and are not taxable. You can complete an unlimited number of direct rollovers in a 12-month period. You will be required to contact your employer’s plan provider with instructions to begin the rollover. We will provide you with our rollover deposit statement.Contribution
Simply complete our contribution form and return it with the amount you would like to invest. Check with your tax advisor to be sure you are eligible for a contribution and the amount you are eligible to make. The standard contribution limit for 2026 is $7,500 or $8,600 if you are 50 or older.
ETZ is an independent, third party platform. Visit www.etzsoft.com to establish your ETZ account.
Complete the Cryptocurrency Account Funding Form. Download the form here.
Once you have completed registration with ETZ, CNB will fund the trading account from your IRA. After the funding arrives at ETZ you will be able to log into your trading account using the ETZ mobile app and begin buying and selling crypto assets.
Fees & Expenses
ETZ charges 90 basis points (.9%) for each purchase and sale in an IRA account and a 0.4% annual fee. Please refer to ETZ for details.
CNB charges a $125 annual base fee per IRA and a $100 annual asset holding fee for cryptocurrency accounts. We also have $15 fee to move funds to or from the trading account along with a $30 wire out or $10 wire in fee. View the CNB fee schedule for full details.
Disclosures
Investing in digital currency is a new concept and remains very speculative, involving a high degree of risk. You are urged to seek professional guidance and/or consider proper diversification and risk tolerance before directing any investment activity. Community National Bank (CNB) does not recommend or evaluate the prudence, merit, viability, or suitability of any investment and will not be responsible for the performance of any investment product. CNB will provide custodial services with respect to the investments in your IRA, but we do not provide investment advice or information, nor are we the agent, partner, employee, representative, or affiliate of ETZ Soft, Inc. nor any financial representative, product sponsor, or other individual or entity except as otherwise disclosed. We are not responsible for and are not bound by any representations, warranties, statements, agreements, disclosures, advice, or information made by any such person beyond the terms and provisions contained in the CNB Custodial Agreement, Disclosure Statements, or other CNB forms or CNB documents.