Investors Beware Cryptocurrency IRA Scam Alert
As an asset protection and estate-planning attorney I frequently see clients who are exploring various investment opportunities.
With tax time there inevitably comes nefarious folks trying to scam people out of their hard earned money with all kind of amazing investment promises. The most recent one is the lure of being able to invest in cryptocurrencies in an IRA that is either “IRS” or “IRA” approved.
This happens during this time of year since taxpayers focus on retirement savings in an effort to either increase deductions or maximize tax savings. On February 2nd, the U.S. Commodity Futures Trading Commission (CFTC) issued a warning to investors to be wary of all virtual currency retirement accounts claiming to be IRS-approved. Neither the IRS nor the CFTC are involved in the review or approval of investments for IRAs. They also do not endorse any type of investment. And they certainly do not issue statements that suggest that any investments are IRS or IRA approved, regulated or protected.
The lure of cryptocurrencies is high and the market is volatile.
I am particularly interested in helping investors protect their investments through proper asset planning. However investors are not protected from wild price fluctuations simply due to the fact that their cryptocurrencies are held in an IRA. Digital currencies are unregulated and there exists the risk of accounts being hacked and currencies being stolen. Retrieving lost or stolen digital assets is tricky, difficult and in many cases impossible.
Please resist the temptation to be lured by any advertising that suggests investing in a cryptocurrency IRA account is IRS approved. If you have cryptocurrencies and want to protect those assets and make sure your loved ones can gain access when necessary, call The Estate & Asset Protection Law Firm for a consultation.