HODLing $BTC Long Term? A Crypto IRA Could Cut Your Tax Bill

If you’re like me, you’ve probably always self-managed your crypto.

But if you genuinely plan to leave some of that crypto alone until you retire – it might be worth looking at a crypto IRA.

The basic idea is simple:

You still own crypto…

Just in a retirement account. With tax advantages.

A Roth Crypto IRA could potentially save you up to 23.8% in federal tax on your gains (before account fees) [1, 2].

1. Internal Revenue Service (IRS). Topic No. 409: Capital Gains and Losses.
2. Internal Revenue Service (IRS). Net Investment Income Tax.

First, What is a Crypto IRA?

IRA stands for Individual Retirement Account.

It’s an additional tax-advantaged account designed for retirement savings, different than your typical 401k.

An IRA can be managed by pros, OR self-directed.

Self-directed lets you take more control and invest in more assets, including crypto.

A crypto IRA is a type of self-directed IRA that – you guessed it – lets you hold and trade crypto within a retirement account.

You don’t pay taxes on trades in a Crypto IRA.

And depending on the setup, you might only pay tax on contributions OR withdrawals – instead of both.

Now, you can’t self-custody in an IRA, so you might expect it to get complicated.