Calculate your bitcoin-powered retirement

Traditional IRA: A Traditional IRA is funded pre-tax. That means you will get a tax break now, and after age 59.5, withdrawals from a Traditional IRA are generally taxed at ordinary income rates. These will usually be funded by a rollover from an existing Traditional IRA or 401(k). They are generally best-suited for people who expect to be in a lower tax bracket when they begin taking withdrawals or otherwise prefer tax benefits “up front” rather than in the future. Contributions to Traditional IRAs give you current-year tax benefits because they are tax-deductible.
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Roth IRA: A Roth IRA is funded post-tax. That means if you meet certain age and other requirements, withdrawals from a Roth IRA after retirement age are generally free of all taxes. Roth IRAs will usually be funded either by a rollover from an existing Roth IRA or Roth 401(k) or by a “Roth conversion” of non-Roth retirement funds. They are generally best-suited for people who expect to be in a higher tax bracket when they begin taking withdrawals. Unlike Traditional IRAs, Roth IRA contributions offer no current-year tax benefits as they are not tax-deductible. A Traditional IRA can be converted to a Roth IRA. The conversion will be subject to income tax, but will be exempt from the usual 10% penalty on early distributions. Some Roth IRA contributions can be withdrawn before retirement age tax-free, but the above calculator does not take this nuance into account.
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SEP and SIMPLE IRAs: If you are self-employed, you may be able to contribute up to 20% of your “net self-employment earnings” with a maximum of $61,000 (the maximum for 2022, although this changes annually) to a SEP IRA. A SIMPLE IRA is a special type of group retirement plan for small employers that has declined in popularity over the years. You can usually roll any balance from a SIMPLE IRA into a bitcoin IRA tax-free. However, SIMPLE IRAs do have a special rule that rollovers are not allowed during the first two years of the account’s existence.
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Many bitcoin holders are anticipating both relatively high tax rates in retirement and for bitcoin to see outsized returns over the course of their pre-retirement years. For these reasons and others, the Roth IRA is an increasingly popular tax-advantaged vehicle for holding bitcoin retirement savings.

This calculator is provided for educational and illustrative purposes only, and cannot be relied upon as tax or investment advice. Unchained makes no representations regarding the tax consequences or investment suitability of any structure described herein, and all such questions should be directed to a tax or financial advisor of your choice.

Unchained Capital, Inc. is not a bank. Unchained Capital, Inc. (NMLS ID: 1900773), Unchained Trading, LLC (NMLS ID:2273761), and Bitcoin Collateral Services LLC (NMLS ID: 2423070) are licensed to provide certain financial services.