NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Bitcoin Hits ATH Of $112,000, Expert Predicts Rally Is Just Beginning
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Bitcoin Hits ATH Of $112,000, Expert Predicts Rally Is Just Beginning

You Will Make $354,730 Tax Free If You Invest in Bitcoin

newsbtc
newsbtc
5 years ago
3 mins read
Bitcoin IRA

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

In the present day situation, a retirement fund is essential to ensure that one continues to enjoy a quality life when they grow old. In order to ensure that a person continues to receive some kind of income in their post-retirement days, Governments have made allowances for various investment schemes.  Individual Retirement Account (IRA) and 401(k) are two such forms of investment.

There are multiple types of IRA. the prominent ones are Traditional IRA and Roth IRA. In traditional IRA, the investor will fund the account with pre-tax income. The contribution towards the IRA is not taxed. However, the funds will be taxed at regular rates during the time of withdrawal (after the person attains the age of 59 and half years).  In Roth IRA, the investment is made with tax-paid income and the gains during the IRA term is not taxable at the time of withdrawal (provided the withdrawal is made after the person attains the age of 59 and a half).

As per the IRS regulations, IRA funds can be invested in stocks and other assets through a custodian and any dividends earned out of these investments can be diverted back into the IRA. With Bitcoin declared as a type of asset, it is legally possible to invest in Bitcoin as part of an IRA. Bitcoin IRA is a recognized service by the IRS.

Investing in Bitcoin IRA is a three step process.

Step 1: Application and Funding

The investor will have to fill the paperwork to transfer retirement funds from an existing IRA or 401(k) to the new IRA

Step 2: Invest

Once the transfer is done, individuals can start investing in IRA funds in Bitcoin

Step 3: Store

The bitcoin investments are stored securely in an IRA approved electronic wallet.

Investing in Bitcoin-based IRA has a lot of advantages

For starters, Bitcoin price is not directly connected with other conventional assets. So, even if there is a turbulence in the market, Bitcoin is most likely going to stay untouched by the aftereffects. At the same time, the value of Bitcoin is only going to appreciate in the future, thanks to a fixed supply of 21 million tokens. In the case of fiat investments, the purchasing power falls drastically with time due to inflation. Also, the tax benefits are huge with Bitcoin IRA than conventional investments.

Example:

Bitcoin price has exhibited a positive trend since its inception. The bitcoin price chart clearly shows the gradual progression of Bitcoin price over years (except for a sharp downward turn in 2014 due to Mt Gox fiasco).

Provided a person starts investing in Bitcoin IRA (Roth) today at the age of 35 years and continues to invest the maximum allowed amount each year until he attains the age of 59 years.  

Then, as per the calculation;

The current value of 1 bitcoin as on September 21, 2016 = $607.4

Maximum allowed investment into IRA per year = $5,500 (assumed to be fixed throughout the term)

Assumed appreciation of Bitcoin price = 10% per annum (conservative assumption)

image1

According to the calculations, he would have invested in about 89.5 bitcoins by the time he reaches the age of 59 and a half. Even though his actual post-tax investment over the period of 24 years stands at $132000, the total savings in fiat would stand at around $ 486730.65 (which is over $354730 more than the actual investment), all tax-free.

This shows that Bitcoin IRA can be much more profitable than conventional IRAs and 401(k)s.

Ref: IRS-Traditional IRA | IRA-Roth IRA |Bitcoin IRA

Tweet123Share196ShareSend
newsbtc
newsbtc

newsbtc

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

Bitcoin Dominance Continues Its Historic Climb – Altcoins Struggle To Gain Ground

Bitcoin Dominance Continues Historic Climb – Altcoins Struggle To Gain Ground

Bitcoin has officially entered a new chapter in its bull market, surging to fresh all-time highs near $118,800 after weeks...

Sebastian Villafuerte 20 hours ago
Bitcoin Breaks Records: What Miners and Leverage Traders Are Doing Behind the Scenes

Bitcoin Breaks Records: What Miners and Leverage Traders Are Doing Behind the Scenes

Bitcoin has surpassed its previous all-time high, reaching $118,254 and marking a notable milestone in its price trajectory. This latest...

Samuel Edyme 1 day ago

No Mania Yet: Bitcoin ATH Lacks Hype, Suggesting Further Upside Potential

As Bitcoin (BTC) continues to post new all-time highs (ATH), reaching as much as $118,869 on Binance, market indicators show...

Ash Tiwari 1 day ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

Bitcoin

Bitcoin Bulls In Cloud 9? Analyst Identifies Where Risk Lies

Opeyemi Sule 9 hours ago
Bitcoin

Bitcoin Price Break Above $118,000 Just The Start, Analyst Unveils ‘Golden Number’

Scott Matherson 12 hours ago
Bitcoin

Bitcoin SOPR Signals More Gains Ahead Despite New ATH – Analyst

Semilore Faleti 15 hours ago

Premium Sponsors

Press Releases

  • ビットコインが11万8,000ドルの最高値を記録する中で注目すべき仮想通貨プレセール

    ...

    13 hours ago
  • 仮想通貨 おすすめ|急騰するDogwifhatとFartcoin、注目の低価格ミームコインとは?

    仮想通貨...

    13 hours ago
  • 新しい仮想通貨価格動向|話題の最新コインの成長可能性

    ...

    14 hours ago
  • アルトコイン注目銘柄|2025年7月第2週に見るべき3銘柄

    ...

    14 hours ago
  • ロビンフッドが1ドルから始めるETHとSOLのステーキングを開始──今注目の仮想通貨投資はこれだ?

    ...

    14 hours ago

Newsletter

Be the first to get the latest important crypto news & events to your inbox.

  • This field is for validation purposes and should be left unchanged.

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.