I'm Donny. I'm a world traveler, investor, entrepreneur, and online marketing aficionado who has a big appetite to compete and disrupt big markets. I thrive on being able to create things that impact change, difficult challenges, and being able to add value in negative situations.
This free crypto IRA calculator will help you calculate how much your retirement account will be if you invest in Bitcoin and Ethereum in your IRA.
Using this crypto IRA calculator
This crypto IRA calculator collects basic information about your age, current savings, estimated future contribution, and estimated rate of return (which defaults to 6%).
It then estimates the value of your crypto IRA when you reach your desired retirement age.
To get a more accurate result, you can add additional details in the Advanced menu, such as what percentage of your IRA you’d like to invest in cryptocurrency, and how you’d like to split that allocation between coins.
For example, a 30-year-old investor with $10,000 of savings who plans to contribute $6,000 per year at a 6% annual return will have an estimated $4.45 million at 67.
Because of compound interest, even small changes can result in a large difference in value. For example, if that 30-year-old investor started just one year earlier or retired just one year later, their estimated value would grow to $5.23 million.
Crypto Definitions
Here are important definitions that you need to know when using the crypto IRA calculator.
Bitcoin: As the most popular and well-known cryptocurrency, Bitcoin is a decentralized digital currency. Bitcoin is unique among cryptocurrencies because it operates on proof-of-work rather than proof-of-stake.
Ethereum: While Bitcoin is the cryptocurrency with the highest market cap, Ethereum is the second most popular cryptocurrency by a large margin.
Ethereum functions similarly to other cryptocurrencies but can include executable code.
Bitcoin IRA: Similar to regular IRAs, a Bitcoin IRA invests cryptocurrency held by a custodian through a crypto exchange.
Bitcoin IRAs follow the same contribution limits and general rules as regular IRAs. This bitcoin IRA calculator helps to estimate the future values of popular cryptocurrencies like Bitcoin and Ethereum.
Self-Directed IRA: A regular IRA only holds common types of investments like mutual funds or stocks, but a self-directed IRA can hold less common types of investments like precious metals or cryptocurrency. Bitcoin IRAs are an example of a self-directed IRA.
Compound Interest: Each year, you earn interest on your investments. If you reinvest that interest, then each year you’ll have more money to earn interest on.
This snowball effect is called “compound interest” and is the reason that starting early makes a major difference in your retirement planning.
Retirement Age: When investors reach the age of 59 ½, they are eligible to withdraw funds from their IRA account—self-directed or otherwise.
However, social security encourages workers to put off retirement until 70 to receive maximum benefits. Most people retire at age 67.
Annual Return: Your annual return is the amount of profit or loss you make on your investment. Annual returns can be expressed in both dollar amounts and percentages.
Annual Contribution: The amount that you put into your IRA each year is your annual contribution. The higher your annual contribution, the faster your money will compound.
FAQs
Is a crypto IRA a good idea?
It’s important to diversify your retirement funds. Although gains are never guaranteed, cryptocurrency is a quickly appreciating asset and this bitcoin IRA calculator helps estimate future value.
Is a crypto IRA tax free?
Crypto IRAs are taxed in the same way normal IRAs are—contributions are tax deductible up to a certain amount, and you pay no capital gains tax until you withdraw funds.
Where is my crypto stored in a crypto IRA?
The custodian of your IRA holds your cryptocurrency, most commonly on a “cold wallet”—a piece of hardware that stores your crypto key offline.
How do I rollover my 401(k) to a crypto IRA?
You can rollover your 401(k) into a crypto IRA just like you would a normal IRA. The custodian of your IRA uses the funds to purchase cryptocurrency through an exchange and then holds it in a self-directed IRA.
Bitcoin IRA is the 1st and most trusted crypto IRA platform that lets you self-trade cryptocurrency in a self-directed IRA. Open an account today.
I'm Donny. I'm a world traveler, investor, entrepreneur, and online marketing aficionado who has a big appetite to compete and disrupt big markets. I thrive on being able to create things that impact change, difficult challenges, and being able to add value in negative situations.
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