Question 1

Who is the IRA administrator?

Accepted Answer

The IRA custodian is Heritage IRA, a licensed third-party administrator.

Question 2

What happens if one of the institutional key partners goes away?

Accepted Answer

With three institutions holding keys in a 2-of-3 model, no single failure can result in a loss. Clients can still access their funds using the other two partners. Onramp also supports key rotation and custodian replacement when necessary. This means clients retain recoverability and resilience even in the rare event that one partner goes away.

Question 3

Are my IRA assets insured?

Accepted Answer

Unlike single-custodian solutions, Multi-Institution Custody is more readily insurable for larger sums. Onramp maintains custody insurance through Lloyd's of London covering its operations against private-key compromise (not client assets), reflecting the industry's recognition of the low-risk profile of multi-institution custody. Schedule a consultation with Onramp to learn more!

Question 4

Do I hold a key in this arrangement?

Accepted Answer

No, you do not hold a key. Three independent institutions each hold a key in a two-of-three multisig vault. Clients retain legal title, maintain on-chain visibility, and benefit from a custody structure designed for resilience. This arrangement may feel unfamiliar to investors who have experience managing self-custody, but this model eliminates single-point-of-failure risk.

Question 5

Can I set up an Inheritance Plan for this IRA account?

Accepted Answer

Yes. You can designate your beneficiaries upfront in your account, ensuring your inheritance plan is clear and secure.

Question 6

Do you pay capital gains tax on bitcoin held in an IRA?

Accepted Answer

As a general rule, buying and selling bitcoin inside an IRA does not trigger capital gains tax in the year of the trade. A Traditional IRA is instead taxed as ordinary income when funds are withdrawn, and a qualified Roth IRA withdrawal is generally not taxed. In a taxable account, by contrast, selling bitcoin at a gain creates a capital gains liability in that tax year. How this applies to you depends on your own circumstances — confirm with a qualified tax professional.

Question 7

Is a Roth or a Traditional IRA better for bitcoin?

Accepted Answer

It depends on your tax rate now versus later, and on whether you intend to spend the position or leave it to heirs. A Roth is generally more favourable when you expect the same or a higher bracket in retirement, because the growth is never taxed. A Traditional IRA is generally more favourable when you expect a materially lower bracket. For assets intended for heirs the calculation changes again, because a Traditional IRA balance reaches beneficiaries as ordinary income. This is a personal tax question — speak to a qualified tax professional.

Question 8

How much can you contribute to a bitcoin IRA?

Accepted Answer

The IRS sets an annual contribution limit for IRAs that is indexed to inflation and changes periodically, with a higher limit for savers aged 50 and over. Rollovers and transfers from an existing IRA, 401(k), or 403(b) are not subject to that annual limit, which is how most Onramp IRA accounts are funded. Check the current published limit before contributing.

Question 9

What happens to a bitcoin IRA when the account holder dies?

Accepted Answer

Beneficiaries are designated in the account upfront, so the IRA passes under that designation rather than through the vault's key arrangement. Because the custody structure does not depend on the account holder holding a key, there is no seed phrase for heirs to find or lose. Note that bitcoin inside an IRA receives no step-up in basis, and under the SECURE Act most non-spouse heirs must empty an inherited IRA within ten years.

The most secure way to hold bitcoin in your IRA.

Onramp now offers IRA accounts, secured by Multi-Institution Custody.

What the tax wrapper is worth

Same bitcoin, three different tax outcomes

Taxable account

Traditional IRA

Roth IRA

Unique benefits of the Bitcoin IRA

IRS compliance, in partnership with a regulated third-party administrator

In-Kind transfers and withdrawals

No technical setup or key management

Resilient long-term storage

Integrated inheritance planning

Institutional-grade liquidity and low trade fees

The institutions behind your custody

We make it easy to fund your account

Transfer

Rollover

Conversion

Contribute USD

Deposit BTC in Kind

SEP Employer Contributions

Simple, transparent IRA pricing

Core includes one free IRA account

No setup fee

Under 5 BTC

Over 5 BTC

Common IRA questions

Open your IRA today